Arbitration is a trial like process of dispute resolution. It is designed for quick, practical and inexpensive resolution. The parties each make a presentation of evidence to the arbitrator. The arbitrator then makes a final and binding decision, which can be enforced in court.

Participation can be voluntary or involuntary. Resolution is imposed on parties by a third-party neutral.

The process can be either binding or non-binding. In a binding arbitration, the arbitrator makes a final and binding decision that can be enforced in court. In a non-binding arbitration, the arbitrator only recommends a decision.

Presentations made to the arbitrator are limited by agreed to rules established by the parties.

The process is usually private. Only the people directly involved in the dispute, those who represent them, and those who are integral to the resolution of the problem should be in attendance at the arbitration.

Arbitration is confidential. There is no need for others to know about what happens in the arbitration unless the participants and the arbitrator agree that it would be beneficial, or there are compelling reasons to limit confidentiality.

The arbitrator controls the process and outcome of the arbitration.

Tripartite Arbitration

Each party unilaterally appoints one arbitrator, after which the appointed arbitrators or the parties agree on a third, neutral arbitrator. Absent an agreement between the parties, their selected arbitrators are normally assumed to be aligned with the side that appointed them and to lack the neutrality expected of the third member of the panel, who serves as the ultimate decision maker in the dispute.

Med-Arb (Dif)

This process is similar to Binding Mediation, except that prior to mediation, the parties may agree that if agreement is not reached, that an arbitrator, different from the neutral, will be employed to resolve the open issues.

Arb-Med

This is the opposite of Med-Arb. The parties first arbitrate the matter, then the arbitrator makes a decision, but reveals the arbitration results only if there is no agreement in the following mediation. The arbitrator’s decision, having already been made, will not be influenced by any confidential information of the parties.

Final Offer Arbitration – Baseball Arbitration

This process received its name because it is often used in player salary negotiations in major league baseball. Each party negotiates until the point of impasse and then each party makes an offer to settle at a particular dollar amount. The two figures are then submitted to the arbitrator, who must choose between them. The arbitrator does not have the authority to modify the figures submitted, or select another figure. This process encourages the parties to make reasonable demands at the onset.

High-Low Arbitration

When high-low arbitration is chosen, specific Supreme Court rules can apply which both the neutral and the parties must follow: “90(c)” packages are submitted to the neutral and the other parties involved one to two weeks prior to the conference. The parties also agree on a high and low number, which act as the ceiling and floor of the award. The high and low numbers are not disclosed to the neutral. This allows everyone to come prepared, and eliminates possible surprises. This process, with decisions being based solely on the law, submissions, and the evidence heard during the hearings, provides for more consistent, predictable results in a case.

Final Offer Arbitration – Night Baseball Arbitration

This is a variation on baseball arbitration. The parties establish their demands but do not reveal them to the arbitrator. The demand that is closest to the arbitrator’s decision becomes the binding arbitration award.

As in non-binding mediation, the independent neutral guides the opposing parties through the negotiation process. The neutral listens to all sides of a dispute, points out strengths and weaknesses in the arguments, and holds separate caucuses with each side to help the parties develop settlement options outside the presence of the opposing party.

If the parties are unable to reach an agreement at the end of a preset time limit, or it is determined that further negotiations will not contribute to a resolution, the neutral will take into account the submitted evidence and information gained during the conference, and render a final binding decision.

Prior to the binding mediation, high/low parameters that limit the award outcome are often set. These limits are NOT disclosed to the neutral. But parties do have a choice on whether previous offers and demands can be known by the neutral. If the neutral does have to render a decision, the award is limited by the set parameters: if the award falls between the set parameters, that, in effect, will become the award; if the neutral’s award falls outside of the limits, the high or low limit will become the award. Because the neutral is never made aware of any set parameters in a case, they will not influence the neutral’s final decision in any way, if one must be made.