In arbitration, a dispute is submitted to one or more impartial persons, usually experts in the construction field, who decide the outcome. The arbitrator's decision is private and binding unless the parties have agreed to an advisory opinion. In binding arbitration, the arbitrator's decision may be appealed to court, but an arbitrator's decision can be reversed only in exceptional circumstances such as obvious bias by the arbitrator or fraud. Although arbitration is more structured than negotiation or mediation, it is more flexible, and less costly, than litigation. Generally, the parties decide how formal the arbitration proceeding will be and what rules they will follow regarding procedures such as discovery, presentation of evidence, and the necessity of a detailed opinion supporting the arbitrator's decision.
Less discovery is conducted in preparing a case for arbitration than for trial.
Private judging involves employing a retired judge to hear a dispute. As with arbitration, private judging is done by consent of the parties, and typically the parties agree that the private judge's decision will be binding. Private judges are usually given most of the powers of a court, and the hearing resembles a typical court trial. The main advantage to private judging over the public courts is the shorter time it takes to get the matter brought to trial. A summary jury trial, which is occasionally used by the federal courts in Cincinnati, is effective in a case in which parties differ substantially on how they think a jury will react to their cause.