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Arbitration is binding only where the parties agree it is binding.

Almost all arbitration is private or contractual arbitration, where the parties have agreed as a matter of contract to have the dispute resolved by an arbiter (aka arbitrator) rather than in court. Arbitration clauses in contracts set forth the conditions under which arbitration will occur, and whether the arbitration is binding.

There is also judicial arbitration, which is court-sponsored arbitration provided for as a matter of state law. Different state laws work differently as to whether such arbitration is binding or not by default. For example, in California, judicial arbitration is non-binding, unless the parties agree otherwise.

If the parties agree the arbitration (contractual/private or judicial) will be binding, then generally there are very few reasons that a court will review or overturn the decisions of the arbiter. That is one of the purported benefits of arbitration -- a quick final decision, without a long legal battle before or afterwards.

2006-06-07 14:37:03 · answer #1 · answered by coragryph 7 · 1 0

I can tell, from personal experience, that in Small Claims Court in New York, decisions made by arbitrators are binding. The only reason to see a judge, instead of an arbitrator, would be if you want the opportunity to appeal a decision. In that case, you must be heard by a judge.

2006-06-07 14:59:04 · answer #2 · answered by Jack 5 · 0 0

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