Arbitration is an ADR (alternative dispute resolution) method where the disputing parties involved present their disagreement to at least one arbitrator or a panel of personal, independent and qualified third party “arbitrators.” The arbitrator(s) determine the result of the case. While it’s going to be less costly and more accessible than trial, the arbitration process has well-defined disadvantages. a number of disadvantages include the danger losing, formal or semi-formal rules of procedure and evidence, also because the potential loss of control over the choice after transfer by the parties of decision-making authority to the arbitrator. By employing arbitration, the parties lose their ability to participate directly within the process. additionally, parties in arbitration are confined by traditional legal remedies that don’t encompass creative, innovative, or forward-looking solutions to business disputes.

During arbitration, parties present cases during a similar manner as they might during a court case to the panel of arbitrators who were chosen by the parties themselves by mutual assent. While arbitration generally proceeds during a less formal manner than a court case, all sides feature a chance to supply evidence, call witnesses, and provides testimony, a bit like during a court case. Both parties generally are represented by arbitration lawyers who make sure that the case goes as smoothly as possible. Once all sides have presented their case, the arbitrators debate and rule. Outcomes handed down by arbitrators are binding—although in some cases they will be appealed.