Arbitration Defined: What is Arbitration?

https://www.jamsadr.com/arbitration-defined/

Arbitration is the most traditional form of private dispute resolution. Arbitration is a binding procedure. It is often "administered" by a private organization that maintains lists of available arbitrators and provide rules under which the arbitration will be conducted. Such organizations can also manage the arbitration in whole or in part. Parties often select arbitrators on the basis of substantive expertise.

Arbitration is adjudicatory, as opposed to advisory, because of the fact that the arbitrator (usually a retired judge or attorney) renders a decision at the end of an arbitration hearing, and that decision is final and binding, subject only to a very limited court review. Arbitration is sometimes referred to as "non-binding" if the parties agree to make it so, but that is really a misnomer. Think of arbitration as a binding, adjudicatory process.

The Process: How Do Arbitrations Work?

Most arbitration is driven by a pre-dispute contract entered into by the parties, in which they agree that if a dispute should arise, it will never get into the court system. The Federal Arbitration Act, coupled with the state arbitration law of the place of arbitration, generally governs the process. If the parties choose an administering authority, such as JAMS, that authority's arbitration rules will govern the procedure that will be followed.

By agreeing to arbitration, the parties, perhaps among other things, are waiving their fundamental, constitutional right to a trial by a jury of their peers. They can have no de novo (second trial) after they have gone to arbitration. Unless otherwise agreed, the decision is legally binding and non-appealable, except in extremely limited circumstances, such as in the case of fraud or collusion on the part of the arbitrator.

In general the arbitrator is an impartial person chosen by the parties. The arbitrator reads briefs and documentary evidence, hears testimony, examines evidence and renders an opinion on liability and damages in the form of an "award of the arbitrator" after the hearing. Once confirmed by a court of appropriate jurisdiction, the award can be subsequently entered as a judgment.