Frequently Asked Questions about Arbitration

Arbitration is a way for parties to resolve disputes outside of the court system, and without going to trial. In an arbitration proceeding, an independent and neutral arbitrator hears evidence from both parties, applies the relevant law, and issues a decision known as an "award." Arbitration decisions are generally binding, but must first be confirmed by a court to be legally enforceable.

In arbitration, each party has the right to be represented by an attorney, but there is no requirement that you have an attorney to participate in an arbitration proceeding.

However, although arbitration is less formal than litigation, consumers should consider that results in arbitration proceedings are generally final and binding.

For more information on where to find an attorney in your area, please visit Legal Help. You may also contact your local bar association or other legal services organization.

Arbitrators are independent third-party individuals who hear the evidence, apply the law, and decide the outcomes of arbitration disputes. Arbitrators are often former judges or experienced attorneys.

Almost any type of legal dispute can be settled in arbitration, including those arising under commercial and consumer contracts, employment claims, real estate and construction issues, Internet domain name disputes, and tort and civil rights matters.

When entering into a contract, the parties can include an arbitration agreement providing that some or all of the disputes that arise between the parties will be resolved in arbitration. Consumers who would like to bring a contract dispute to arbitration should consult the specific language of their arbitration agreement. For help locating the arbitration agreement in a given contract, please visit Arbitration Agreements.

Yes, under both state and federal arbitration law, arbitration decisions can be reviewed in court. For an arbitration award to be legally enforceable, it must be confirmed by a court. If a party believes that either an arbitration agreement or the arbitration award is unenforceable, the party can seek to have the award vacated in court. However, to promote finality and efficiency, arbitration awards are most often treated with deference by reviewing courts. In fact, the applicable arbitration law very often does not permit the court to review all of the evidence that was submitted in arbitration and to second-guess the arbitrator’s decision. Instead, courts are typically only permitted to overturn awards where there has been fundamental procedural unfairness, arbitrator bias, or the arbitrator has exceeded their legitimate power or jurisdiction.

The fees associated with bringing an arbitration claim vary based on the individual arbitration administrator and the type of arbitration proceeding. Fee schedules for individual arbitration administrators can be found at the administrators' websites.

Although the fees associated with bringing an arbitration claim vary based on the individual arbitration administrator, most major administrators have processes through which individuals who cannot afford to bring a claim can have the arbitration fees waived.

For fee information about the individual arbitration administrators, please visit the Arbitration Administrators section of this website.

Both arbitration and mediation are forms of alternative dispute resolution that allow parties to settle or resolve legal disputes outside of the court system. In arbitration, two parties generally present evidence to a neutral third-party arbitrator, who considers the evidence, applies the law and renders a binding decision.  In mediation, two parties generally work with the neutral third-party mediator to reach a mutually agreeable solution to a dispute. Parties to mediation are not required to reach a settlement, but a settlement that is reached can be made binding if both parties agree after the fact.

For more information about arbitration, please visit the What is Arbitration?, Arbitration In Contracts, How Do I Respond to An Arbitration Claim?, and I Want to Resolve a Dispute – What Are My Options?, sections of this website.

In addition, you can visit the websites of any of the individual arbitration administrators, whose contact information appears on the Arbitration Administrators page.

Finally, for general reference information, information about the laws of individual states, please visit the Additional Resources page.