What is “arbitration”?

If you have a legal issue that needs resolved, who are you gonna call? (Hint: it’s not the Ghostbusters). You might instigate judicial proceedings, bring a claim against the other party or, increasingly, opt to use a method of dispute resolution that does not involve a court. One of these alternative methods is known as arbitration. With roots dating back thousands of years to the dawn of commerce itself, arbitration is a procedure where the parties agree to submit their disagreement to a neutral third party. After hearing the facts of the dispute, these independent adjudicators (known as “arbitrators”) will then deliver a binding decision. This is different from mediation, where a mediator assists the parties in reaching a solution but their guidance is non-binding.