WHAT IS ARBITRATION ?
Unlike a mediation, a hearing takes place where the arbitrator(s) hears the parties’ argument.
Depending on what evidence, if any, and what is stated in the hearing, the arbitrator(s) make a final decision resolving the conflict. This is what is called an arbitration award.
What is used in the hearing, including the rules of law that the hearing will follow, is mutually agreed to by the parties involved. That is the rules of law must be in conformity with the laws of the State, if any are used.
The common thread in both mediation and arbitration is that the parties agree to abide by the determination of the award in arbitration or the agreed upon settlement agreement in mediation.
ARE THE SETTLEMENT AGREEMENTS AND ARBITRATION AWARDS BINDING ?
In arbitration, the arbitration award ends the conflict completely. If a dispute is in litigation, it is up to the parties to submit it to the court. It is in very rare occasions that the court will overturn an arbitration award.