How does arbitration work?
What is Arbitration?
Arbitration is the settlement of a dispute between two parties by a neutral third party. The neutral party is the arbitrator, and the parties with the disagreements agree to the arbitrator’s ruling.
So….what is the process of arbitration?
Parties agree to abide by the independent arbitrator’s ruling on specific issues, as they work toward a negotiated settlement. Attorneys for both parties present their arguments in a series of arbitration hearings and the arbitrator rules on the matter.
The decisions are not necessarily win or lose. Most times, the arbitrator finds middle ground for a proposed settlement. When both parties agree to the final settlement, the agreement is presented to a judge for final approval. The arbitrated settlement then becomes a legal court judgment.