Arbitration facts for kids

A scale showing different ways to solve problems, with arbitration as one option.

Arbitration is a way to solve disagreements without going to court. It's like asking a neutral, fair person to help settle a fight between two sides. This method is part of what's called "alternative dispute resolution" (ADR). It offers a different path than a traditional lawsuit, which can be very expensive and take a long time.

When people choose arbitration, they agree to let a neutral third party decide their argument. This third party is called an arbitrator. Sometimes, there's a group of three arbitrators. Each side might pick one arbitrator, and then those two arbitrators agree on a third one. The final decision is made by a majority vote.

How Does Arbitration Work?

When you choose arbitration, both sides agree beforehand to follow the arbitrator's decision. This decision is legally binding, meaning it must be followed, and it can be enforced in court.

The process usually includes a special meeting called a hearing. During this hearing, both parties get a chance to explain their side of the story. They can present evidence, like documents or witness statements. The arbitrator or arbitrators listen carefully to everything. After reviewing all the information, they make a decision that helps solve the problem.

Arbitration vs. Mediation

Another way to solve problems without court is called mediation. Both mediation and arbitration use neutral third parties to help. Because of this, people sometimes get them confused.

Here are the main differences:

• Mediator's Role: A mediator does not make any decisions for the parties. Instead, the mediator helps both sides talk to each other. Their goal is to guide the parties to find their own agreement.
• Number of Neutrals: In mediation, there is usually only one mediator. Arbitration often uses a panel of three arbitrators.
• Binding Decisions: Unlike arbitration, mediation is usually non-binding. This means the parties don't have to agree to the mediator's suggestions. They can still go to court if they can't reach an agreement.

Mediation is often used for smaller arguments or when people want to keep the details private. In some places, you might even need to try mediation before you can take a case to court.

Images for kids

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  The London Court of International Arbitration, a place where international disputes are resolved through arbitration.

See also

In Spanish: Arbitraje (derecho) para niños