Mediation and ADR
Arbitration
A process in which a neutral person or panel, the arbitrator, hears each side's facts and arguments and then decides the dispute. The decision may be binding or nonbinding.[1][2]
In more detail
Arbitration differs from mediation in who decides: an arbitrator issues a decision, while a mediator helps the parties reach their own agreement.[1] The federal courts' glossary describes the arbitrator as a neutral decision maker and notes that whether the result binds the parties depends on what they agreed before the hearing.[2] Arbitration may be ordered by a court program or agreed to in a contract.
Varies by state
Arbitration rules, including when a court can send a case to it and how an award can be challenged, differ by state and under federal law. Find your state’s rules.
Related terms
- Binding arbitrationArbitration in which the parties agree in advance to be bound by the arbitrator's decision.
- Nonbinding arbitrationArbitration in which the arbitrator's decision doesn't bind the parties unless they agreed in advance that it would; it serves as a basis for further settlement talks or becomes final if no one rejects it in time.
- AwardThe decision an arbitrator or arbitration panel issues after hearing both sides.
- MediationA process in which a neutral mediator helps the parties communicate and negotiate so they can reach their own voluntary agreement.
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Sources
The official documents this definition is based on, with the date we last read each one. Definitions are in our own words.
General information, not legal advice. MediationList is not a law firm. Spotted an error? Tell us.
Cite this page
MediationList. (2026, October 28). Arbitration: Definition. https://mediationlist.com/glossary/arbitration/
APA 7th ed. A retrieval date is included only for pages whose content changes, such as maps, data and tools.