Mediation and ADR
Nonbinding arbitration
Arbitration 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.[1][2]
In more detail
In Texas court-referred arbitration, an award is nonbinding unless the parties stipulated otherwise beforehand.[1] In Florida's court-ordered nonbinding arbitration, a party who wants a trial must request a trial de novo in time, and may owe costs and fees if the trial result is much worse for them than the award.[2] Federal courts' local rules can provide for similar programs.[3]
Varies by state
Deadlines and cost rules for rejecting an award differ by state and court. Find your state’s rules.
Related terms
- ArbitrationA process in which a neutral person or panel, the arbitrator, hears each side's facts and arguments and then decides the dispute.
- Binding arbitrationArbitration in which the parties agree in advance to be bound by the arbitrator's decision.
- AwardThe decision an arbitrator or arbitration panel issues after hearing both sides.
- Trial de novoA new trial of a case from the beginning, as if an earlier decision, such as a nonbinding arbitration award, had not been made.
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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.
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MediationList. (2026, October 28). Nonbinding arbitration: Definition. https://mediationlist.com/glossary/nonbinding-arbitration/
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