Arbitration Glossary

Consumer Arbitration Terms

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• Adjournment

  A continuance or delay of a case for a specific period of time.

• Affidavit

  A written statement of a person who asserts the statement to be true under penalty of perjury or who makes the statement under oath before a notary public or other authorized individual.

• Alternative Dispute Resolution (ADR)

  A way to resolve disputes outside of the traditional state or federal court systems.  Arbitration and mediation are two widely used ADR processes.

• Answer

  The written reply to a claim by the respondent.  Also see "Response."

• Arbitration

  A widely used method of alternative dispute resolution in which two or more parties submit their dispute to an independent arbitrator (or panel of arbitrators), who then considers the evidence, applies the relevant law, and issues a decision.

• Arbitration Administrator

  An independent, third-party organization that manages and administers the arbitration proceeding, including the appointment of an arbitrator.

• Arbitration Agreement

  The contract or clause within a contract in which two or more parties agree, before entering into a contract, to resolve any dispute that may arise between them in arbitration as opposed to resolving the dispute in the court system.

• Arbitrator

  A neutral third-party individual – often a former judge or experienced lawyer – assigned to hear and decide an arbitration case.

• Attorney (at law)

  Someone legally qualified to prosecute and defend actions in court on behalf of a client or clients, and to advise a client or clients on legal matters. Parties in arbitration or in court typically have the right to be represented by an attorney.  Also known as "Counsel" or "Representation."

• Award

  The decision issued by an arbitrator in an arbitration proceeding resolving the dispute between the parties, similar to a judgment in a court proceeding.

• Binding Arbitration

  One type of alternative dispute resolution in which two or more parties submit a dispute to an independent arbitrator and agree in advance to comply with the arbitrator’s decision. The majority of arbitration proceedings are binding, and arbitration agreements mentioning arbitration are typically presumed to call for binding rather than non-binding arbitration.

• Claim

  A demand for money or other relief in a dispute, a claim must be filed to begin litigation or arbitration proceedings. 

• Claimant

  The party who filed and made the arbitration claim.

• Confirm

  To convert an arbitration award into an enforceable judgment, the prevailing party must seek judicial confirmation of the award. Most court jurisdictions make available summary legal procedures through which parties can seek to confirm an award.

• Contract

  A binding, legally enforceable agreement between two or more parties to do, or refrain from doing, something, including the exchange of products and services for money.

• Counsel

  An attorney who advises and represents a party in arbitration proceedings. Also see "Representative."

• Counterclaim

  A claim filed against a claimant. Once a party has filed a claim, the opposing party may then file a counterclaim.

• Cross-Claim

  A claim by a respondent against a co-respondent or by a claimant against a co-claimant.

• Damages

  The amount of money awarded to a successful plaintiff or claimant in a civil action or arbitration proceeding.

• Default Judgment

  In court, if one party does not respond to a claim, the other party may often request a favorable judgment based exclusively on their opponent’s failure to respond. This is not always the case in arbitration.

• Desk Hearing

  See "Document Hearing."

• Dismissed with Prejudice

  The case has been closed, and the party who filed the initial claim cannot bring the claim again against the respondent.

• Dismissed without Prejudice

  The case has been closed, and the party who filed the initial claim can bring the claim again against the respondent.

• Document Hearing

  An arbitration hearing in which the parties present their arguments and evidence to the arbitrator in writing. In arbitration, parties can decide to have a hearing in-person, via telephone, or simply by submitting documents/evidence to the assigned arbitrator. Also commonly called a "Desk Hearing."

• Filing

  Delivering a statement of a claim or dispute, or other pleadings, to be kept on file as a matter of record and reference.

• Indigent

  A term used to describe a consumer who meets the United States Federal poverty standards or other standards that may be established by an arbitration administrator.

• Injunction

  An order from a judge or arbitrator that either prohibits a party from a particular activity or compels the party to perform a particular activity. An injunction can "enjoin" or "restrain" a party from doing something.

• In-Person Hearing

  An arbitration hearing in which the parties and an arbitrator meet in an office/conference room, etc., and present evidence in person.  In arbitration, parties can typically decide to have a hearing in-person, via telephone, or simply by submitting documents/evidence to the assigned arbitrator. Also commonly called a "Participatory Hearing."

• Judgment

  A formal decision given by a court.

• Lawsuit

  See "Litigation."

• Lien

  A legal claim against a piece of land or other property for payment of a debt, obligation, or duty.

• Litigation

  The mechanism for resolving legal disputes through the state or federal court system. Also commonly called a "lawsuit."

• Mandatory Arbitration

  One type of alternative dispute resolution in which two or more parties are required to submit a dispute to arbitration, and not litigation.

• Mediation

  A widely used type of alternative dispute resolution in which an impartial person (the mediator) helps two or more parties settle a dispute by reaching an agreement together.  In mediation – as opposed to arbitration – the mediator does not decide the outcome.

• Mediator

  An independent third-party person who helps two or more parties reach agreement in a mediation proceeding. 

• Neutral

  An independent third-party person who participates in dispute resolution activities between two or more parties. Also see "Arbitrator" or "Mediator."

• Non-Binding Arbitration

  Arbitration where the arbitration award does not provide final and binding resolution to the dispute between the parties. Non-binding arbitration is rarer in practice than binding arbitration.

• Notice of Arbitration

  Notification received in the mail by a party against whom a claim has been filed.

• Opt-Out Clause

  Language contained in many arbitration agreements which allows consumers to reject the arbitration agreement within an allotted timeframe while still agreeing to the remaining terms of the contract.

• Panel

  A roster or listing of candidate arbitrators who may be selected to serve as an arbitrator in any particular case.  Also, a description of a group of arbitrators (most often three in number) selected to hear and decide a particular case.

• Participatory Hearing

  See "In-Person Hearing."

• Party

  A person or organization making a claim or responding to a claim in a legal proceeding such as arbitration.

• Penalty of Perjury

  Perjury laws in many jurisdictions make it a crime to knowingly lie after taking an oath to tell the truth, such as when testifying or communicating in legal matters.

• Proof of Service

  An affidavit stating how and where service was made.

• Respondent

  The person or party against whom a claim is made - the person or party who responds to a claim.

• Representative

  Someone who submits a document or makes a statement on behalf of a party in a dispute.

• Service

  Delivery of the claim or other pleadings in order to give legal notice to the parties named in a court or arbitration proceeding.

• Stay

  A case delay for a period of time, sometimes indefinitely.

• Subpoena

  Generally, a command from a court or arbitrator to appear at a given time and place to provide testimony or other evidence in a legal proceeding.

• Telephone Hearing

  An arbitration hearing in which the parties have the opportunity to tell the arbitrator about their case during a telephone call. The telephone call often takes place after both parties have submitted documents/evidence for the arbitrator to consider. In arbitration, parties can decide to have a hearing in-person, via telephone, or simply by submitting documents/evidence to the assigned arbitrator.

• Third-Party Claim

  A claim made by an individual or entity who does not have a direct connection with a legal transaction but who might be affected by it.

• Trial de Novo

  A new trial or retrial during which the entire case is retried as if no trial had ever occurred in the first place. Trial de Novo may be available to parties after the conclusion of a non-binding arbitration proceeding. 

• Unspecified Damages

  A claim for an unknown or undisclosed amount of money or other relief.

• Vacate

  To nullify or overturn an arbitration award. A losing party in an arbitration proceeding can attempt to have a court "vacate" the award under standards laid out in the applicable state or federal arbitration law.