Arbitration is a formal dispute resolution process in which a neutral arbitrator reviews information presented by the parties and issues a decision, commonly referred to as an award. Arbitration is used across many types of civil, commercial, employment, and organizational disputes. The specific format of an arbitration can vary depending on contractual agreements, governing rules, or the administering organization.
Although no two arbitrations are exactly the same, the process often follows a general sequence of steps.
The Beginning of the Arbitration Process
Arbitration typically begins when the parties agree to arbitrate a dispute or when a contract, policy, or governing rule requires arbitration. Once the process is initiated, procedural information is provided to the parties. This may include filing requirements, timelines, and administrative details that outline how the arbitration will move forward.
Selection of the Arbitrator
The arbitrator is the neutral decision-maker responsible for overseeing the proceeding and issuing the final award. Arbitrators may be selected jointly by the parties, appointed by an administering organization, or chosen through another agreed-upon method. The selection process establishes who will preside over the arbitration.
Preliminary Conferences and Scheduling
A preliminary conference is often held to organize the case. During this meeting, the arbitrator and the parties outline the structure of the arbitration, including scheduling, the format of document exchange, and expectations for hearings or submissions. The purpose is to create a timeline and clarify procedural steps.
Exchange of Information
Many arbitrations include a phase in which the parties exchange documents or other materials relevant to the dispute. The scope and format of this exchange depend on the applicable rules or agreements. This step allows each party to review information that may be referenced during later stages of the arbitration.
Pre-Hearing Motions or Submissions
Some arbitrations allow parties to submit motions or written statements before the hearing. These materials can include legal positions, summaries of facts, or procedural requests. The arbitrator reviews these submissions as part of preparing for the upcoming hearing.
The Arbitration Hearing
The hearing is the central part of the process.
During the hearing:
- Each party may present its information.
- Witnesses may give statements.
- Documents or exhibits may be introduced.
- The arbitrator may ask questions to clarify issues.
The hearing is typically less formal than a courtroom trial, though the structure still follows an organized format to ensure each side has the opportunity to present its case.
Post-Hearing Submissions
In some cases, the arbitrator may request or permit written submissions after the hearing. These materials may summarize key points or address issues discussed during the proceedings. Whether post-hearing submissions are allowed depends on the rules or procedures governing the arbitration.
Issuance of the Award
After reviewing the information presented, the arbitrator issues a written award. The award sets out the arbitrator’s decision and resolves the dispute within the scope of the arbitration. Whether the award is binding or nonbinding is determined by the parties’ prior agreement or applicable rules.
The Finality of the Process
Once the award is issued, the arbitration process is typically concluded. Any actions taken after the award are governed by applicable laws or agreements and occur outside the arbitration proceeding itself.
This blog is for general informational purposes only and is not legal advice.*
