In Texas, arbitration may be binding or non-binding. Binding arbitration means that the arbitrator’s decision, with limited exceptions, is final. The arbitrator basically acts as judge and jury and the parties must abide by the decision. In non-binding arbitration, the parties may abide by the arbitrator’s decision. However, the parties are not bound by the decision, and a party who is dissatisfied with the arbitrator’s ruling can pursue other remedies, such as filing or proceeding with a lawsuit. Due to the lack of finality, non-binding arbitration is rarely used.