Before arbitration starts, the parties may decide whether the arbitration will be binding or non-binding. They may also agree that the arbitration will be confidential. If an agreement for binding arbitration is made, the arbitrator's award is enforceable like a court judgment. If the parties agree on non-binding arbitration, the arbitrator's award only provides addi tional information for use in further settlement negotiations. Non-binding arbitration is generally used when parties desire a neutral case evaluation coupled with an advisory monetary award.
Most arbitrations are informal hearings.
Each party presents its position. The parties, the attorneys and the arbitrator ask questions and discuss the issues. Finally the arbitrator makes a decision. The rules for non-binding arbitration are found in state laws, local rules referencing state law, and local court rules. The preferences of the parties and arbitrator are also considered.