Non-binding arbitration is a type of alternative dispute resolution often referred by the court, where a neutral third party, called an arbitrator, reviews the evidence and arguments from both sides and then issues a recommended decision or award.
However, unlike binding arbitration, this decision is not final or legally enforceable unless accepted by all parties.
Key Benefits of Non-Binding Arbitration:
- Encourages Early Settlement: Parties get an impartial evaluation of their case, which can motivate them to settle before trial.
- Less Formal and Faster: It’s usually quicker and less formal than going through a full court trial.
- Maintains Control: Since the decision is not final unless both parties agree, parties retain the right to reject the decision and proceed to trial if unsatisfied.
- Reduces Court Backlog: When ordered by courts, it helps reduce the number of cases that go to trial, easing the court system’s workload.