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Binding arbitration means that the parties waive their right to a trial and agree to accept the arbitrators decision as final. Generally, there is no right to appeal an arbitrators decision. Non-binding arbitration means that the parties are free to request a trial if they do not accept the arbitrators decision.
The advantages include the following: The arbitration process is less costly and generally faster than going through the courts. Unlike in a court case, where the contested issue is heard before a judge, in an arbitration you often have a say over who will be the arbitrator.
Most of the time, but not always the case, arbitration is a lot less expensive than litigation. Arbitration is often resolved much more quickly than court proceedings, so attorney fees are reduced. Also, there are lower costs in preparing for the arbitration than there are in preparing for a jury trial.
Arbitration is an out-of-court method for resolving a dispute between a worker and an employer. Arbitration takes place in front of a neutral decision-maker called an arbitrator (or in some cases, a group or panel of arbitrators) who will listen to each side and make a decision about the case.
Arbitration and litigation are different ways to settle business disputes. Arbitration processes are overseen by an arbitrator, while litigation is under control of a judge. The decision of a judge can be appealed, while the decision of an arbitrator is usually binding on both parties and has limited appeal rights.
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Arbitration: Arbitration is an adversarial proceeding where each party selects an arbitrator, a neutral third party, to resolve their dispute. Parties who agree to settle their dispute using binding arbitration typically cannot appeal the arbitrators ruling.
By TV standards, arbitration may seem like the less-sexy cousin of litigation. No judge, no jury, no courtroom. But its faster resolution, lower cost, and binding decision often make arbitration the preferred choice for your small business clients.
Arbitration typically provides a speedier resolution than proceeding in court. The limited right to appeal arbitration awards typically eliminates an appeal process that can delay finality of the adjudication.
Litigation is a legal process in which the court decides the outcome for the dispute. Arbitration resolves disputes by appointing a neutral third party to study the case, receive the evidence, and then make a binding decision.
Judicial arbitration is a binding or non-binding process where an arbitrator applies the law to the facts of the case and issues an award. The goal of judicial arbitration is to provide parties with resolution that is earlier, faster, less formal and less expensive than a trial.

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