Arbitration is a way for parties to resolve disputes outside of the court system, and without going to trial. Nearly any type of dispute can be arbitrated, from commercial and employment disputes to automobile injury and Internet domain name disputes – and almost anything in between.
In arbitration, parties bring their dispute before a neutral third-party individual known as an “arbitrator,” who has been assigned to hear the case. Arbitrators are often former judges or experienced lawyers. In arbitration, each party has the right to be represented by an attorney, but may proceed without one.
Once both parties have presented all relevant evidence to the arbitrator – documents, testimony, etc. – the arbitrator considers the facts, applies the law, and issues a decision. Arbitration decisions are generally binding and legally enforceable, but must be confirmed by a court. The losing party can also attempt to overturn – or “vacate” – the arbitration decision in court.