To be sufficient, procedural safeguards in arbitration must mirror those in judicial proceedings, ensuring fairness and due process. This includes formal presentation of evidence, the opportunity for cross-examination, testimony under oath, and an impartial arbitrator. Only arbitrations that offer these judicial-like protections can have a conclusive effect on subsequent legal claims.
For example: An employer and employee enter into arbitration over an alleged breach of contract. If the arbitration allows for sworn statements from witnesses, cross-examination, and decisions made by an unbiased panel, its outcome could prevent the employee from raising the same issue in court.