What is Arbitration?

Black’s Law Dictionary defines ARBITRATION as “the investigation and determination of a matter or matters of difference between contending parties, by one or more unofficial persons, chosen by the parties, and called “arbitrators,” or “referees.” In other words, it is a way to settle a case outside of the traditional trial setting, by having each side tell its story to a third-person who will render a decision in an informal manner. Certainly, arbitration may have its advantages in that an arbitration hearing can take place sooner than a trial can. Businesses particularly favor arbitration, because it saves them legal fees that would be otherwise incurred by going to trial and results in arbitration are confidential.


There are two types of arbitration: binding and non-binding. In binding arbitration, the case is settled in arbitration regardless of the outcome. In non-binding arbitration, if the parties do not agree with the decision made in arbitration, they can simply disregard the arbitration decision and proceed to use the court system to render a settlement or go to trial.

Many times, businesses make contracts for consumers which require consumers to give up their right to a trial and force them to settle their legal matters through binding arbitration. Sadly, the people signing these contracts are seldom aware of the binding arbitration provisions and that they are giving up their right to a trial.

The Trial Lawyers at Villari, Lentz and Lynam have a history of successfully getting binding arbitration agreements declared null and void, ensuring victims their right to a jury trial.



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