About Arbitration
Arbitration is an out of court procedure for resolving disputes using one or more neutral third parties. An arbitration is presided over by a single Arbitrator or by a panel of Arbitrators. Arbitration relies on rules of Equity and Common Law legal concepts of fairness. Arbitration uses rules of evidence and procedure that are less formal than those followed in trial courts. This usually leads to a faster and less-expensive resolution of cases.

Types of arbitration
  1. Binding arbitration: This is similar to a court proceeding in that the Arbitrator by prior agreement is given the powers by the parties to impose a final and binding decision. Modernly many contracts -- including those imposed on customers by financial and healthcare organizations -- require mandatory arbitration in the event of a major dispute.
  2. Non-binding arbitration: Here the Arbitrator by prior agreement may recommend but not impose a final binding decision on the parties. This is akin to an advisory opinion. Many times the parties to a dispute may choose this route in order to evaluate the strengths and weakness of their case.