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About Arbitration:

Arbitration, which is often confused with mediation, is the adjudication of a dispute by a privately retained neutral third party known as an "arbitrator".

Arbitration differs from mediation in that a final and binding decision about the matters in issue will be made by the arbitrator.  The parties do not determine the outcome but do have the opportunity to present their case to the arbitrator who acts, in effect, as a private judge.

The process requires an agreement to submit a dispute for arbitration.  That agreement may be part of a prior contractual arrangement, or may be a fresh agreement for the sole purpose of determining specific issues.  In either event, all parties must agree to participate, and similarly, must agree to the rules, procedure and even the law that applies.

Part of the function of the arbitrator, or panel of arbitrators, is to organize and regulate the procedural steps that are necessary to facilitate the presentation of evidence and argument on the matters in issue. 

Ultimately, an arbitrator's job is to listen to and assess the evidence and arguments, and reach a conclusion as to how the matters in dispute will be resolved.  Reasons for reaching a conclusion may or may not be given, at the election of the parties.

Arbitration provides a private, adaptable and expeditious mechanism for determining a dispute.  It will usually be less expensive than litigation, and allows the parties to have input into the choice of the arbitrator, and the manner in which the proceedings are conducted.