Alternatives to litigation are not necessarily new or innovative, but have become more structured, defined and used especially as litigation has become so expensive. Arbitration is one alternative to litigation in our courts. The process is governed by rules, but far less formal and complex than those involving our courts. The process is also shorter and far less expensive than the litigation process. Any party who disagrees with the decision of the arbitrator can usually resort to litigation in the courts provided that he or she have the cognizable cause of action to attack the decision.
Arbitration is by agreement between the parties.
It can be non-binding, which means either party unsatisfied with its result is free to pursue litigation, or it can be binding, which means that only with good cause can the dissatisfied party seek redress in the court. Many Courts now require arbitration between the parties to litigation in an attempt to settle disputes without a court trial. In most cases, the case is referred to arbitration before completion of all formal discovery, and an award is rendered by a panel of arbitrators who render a decision. However, in most cases the party who loses the arbitration may reject the decision and proceed with the litigation in Court. It is a process to facilitate the resolution of the dispute by the parties themselves through mutual agreement.