{"id":357646,"date":"2016-04-04T10:41:50","date_gmt":"2016-04-04T15:41:50","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/adr\/arbitration\/using-arbitration-to-resolve-legal-disputes.html"},"modified":"2026-06-23T11:34:00","modified_gmt":"2026-06-23T16:34:00","slug":"using-arbitration-to-resolve-legal-disputes","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/adr\/arbitration\/using-arbitration-to-resolve-legal-disputes.html","title":{"rendered":"Should I Use Arbitration To Resolve My Legal Dispute?"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">Should I Use Arbitration To Resolve My Legal Dispute?<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/lark-lewis-j-d\/\">Lark Lewis, J.D.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/john-mascolo-esq\/\">John Mascolo, Esq.<\/a>\n                | Last updated\n        <time>\n                            June 23, 2026\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n    <div class=\"fl-callout-text article-blockquote\">\n        <div data-testid=\"ai-message-body\">\n<div>\n<div id=\"Mx8GtBfs3a9yQf8zG9xvR-content-0\">\n<p>Arbitration is a private ADR process where each side presents its dispute to a neutral arbitrator instead of going to court. It\u2019s often quicker, less expensive, and more flexible than traditional litigation because the parties help shape the procedures and may even choose their decision\u2011maker. Understanding how arbitration works can help you decide whether this approach fits your legal dispute.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div><\/div>\n\n    <\/div>\n\n\n\n<p>Arbitration is a form of\u00a0alternative dispute resolution (ADR). It provides an alternative to civil court lawsuits and trials, the traditional method for resolving legal disputes. There&#8217;s been an increase in the use of\u00a0<a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/alternative-dispute-resolution.html#:~:text=Alternative%20Dispute%20Resolution%20(ADR)%20is,less%20costly%20and%20more%20expeditious.\">ADR techniques<\/a>\u00a0to resolve disputes due to concerns about:<\/p>\n<ul>\n<li>Court congestion and delays<\/li>\n<li>Rising litigation costs<\/li>\n<li>Litigation&#8217;s negative psychological and emotional impact<\/li>\n<\/ul>\n<p>If you&#8217;re considering arbitration, it&#8217;s essential to understand how the process works in the context of the legal dispute you&#8217;re facing. This article discusses the benefits of arbitration, the traditional arbitration model, the arbitration process, and forms of arbitration.\u00a0<\/p>\n<p>While arbitration is more flexible than litigation, it can still be complex to navigate. Additionally, some arbitration decisions are binding. Talk to an <a href=\"https:\/\/lawyers.findlaw.com\/alternative-dispute-resolution\" target=\"_blank\" rel=\"noopener\">attorney near you<\/a> to review your options and make sure arbitration is the best fit for your situation.<\/p>\n<h2><strong>The Benefits of Arbitration<\/strong><\/h2>\n<p><a href=\"https:\/\/www.findlaw.com\/adr\/arbitration.html#:~:text=The%20arbitration%20process%20involves%20an,and%20approved%20by%20both%20parties.\">Arbitration<\/a>\u00a0is the most formal alternative to litigation. In the arbitration process, the disputing parties present their case to a neutral third party. The neutral third party renders a decision. Disputing parties use arbitration to resolve claims in both the private and public sectors.<\/p>\n<p>In general, arbitration is\u00a0a more efficient process than litigation. This is because it is:<\/p>\n<ul>\n<li>Quicker<\/li>\n<li>Less expensive<\/li>\n<li>Provides greater flexibility in process and procedure<\/li>\n<\/ul>\n<p>In arbitration, the parties often select the arbitrator. They can also exercise control over aspects of the arbitration procedure. Arbitrators typically have more expertise in the specific subject matter of the dispute than judges. They may also have <a href=\"https:\/\/www.findlaw.com\/adr\/arbitration\/arbitration-pros-and-cons.html\">greater flexibility<\/a> in decision-making.<\/p>\n<h2><strong>The Traditional Arbitration Model<\/strong><\/h2>\n<p>Under the traditional arbitration model, parties voluntarily participate in the arbitration process. Participation may result from a preexisting\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-contracts-forms\/contract-law.html\">contract provision<\/a>. Parties can also enter into an agreement to arbitrate after a dispute has arisen.<\/p>\n<p>Arbitration agreements <a href=\"https:\/\/www.findlaw.com\/adr\/arbitration\/the-arbitration-process.html\">address the process<\/a> for hearing and resolving a dispute. It&#8217;s important to read the fine print before you sign one. These agreements generally provide a method for determining the following:<\/p>\n<ul>\n<li>The arbitrator or panel of arbitrators<\/li>\n<li>The format of the hearing<\/li>\n<li>The procedural and evidentiary rules in effect<\/li>\n<li>The controlling law<\/li>\n<\/ul>\n<p>If the contract&#8217;s arbitration clause or arbitration provisions don&#8217;t provide these details, the parties may seek help from agencies that administer arbitrations. Common agencies include the American Arbitration Association (<a href=\"https:\/\/www.adr.org\/\" target=\"_blank\" rel=\"noopener\">AAA<\/a>) and\u00a0<a href=\"https:\/\/www.jamsadr.com\/\" target=\"_blank\" rel=\"noopener\">JAMS<\/a>. An arbitration agreement may specify both the agency and the arbitration rules that will govern the dispute.<\/p>\n<h2><strong>The Arbitration Process<\/strong><\/h2>\n<p>In most cases, a party initiates the arbitration process by sending the other party a written\u00a0demand\u00a0for arbitration. The demand\u00a0describes:<\/p>\n<ul>\n<li>The parties<\/li>\n<li>The dispute<\/li>\n<li>The type of relief sought<\/li>\n<\/ul>\n<p>The opposing party usually responds in writing, indicating whether they believe the dispute is arbitrable. If the conflict is arbitrable, the parties select an arbitrator or panel of arbitrators known as an arbitral tribunal.<\/p>\n<p>In most jurisdictions, the format for arbitration is <a href=\"https:\/\/www.findlaw.com\/litigation\/going-to-court\/courtroom-proceedings.html\">like a trial<\/a>. The parties:<\/p>\n<ul>\n<li>Make\u00a0opening statements\u00a0and\u00a0closing arguments<\/li>\n<li>Present testimony and witnesses<\/li>\n<li>Offer documents<\/li>\n<\/ul>\n<p>Notably, the <a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/evidence-law.html\">rules of evidence<\/a> that apply to trials do not apply to arbitration proceedings. Discovery and cross-examination\u00a0opportunities are also limited. Arbitrators can order parties to submit to depositions and other pre-hearing discovery at their discretion.<\/p>\n<p>In most cases, people engage in binding arbitration. This means that an arbitrator issues a binding decision. There may be limited opportunities for appeal.<\/p>\n<h2><strong>Forms of Arbitration<\/strong><\/h2>\n<p>There are different forms of arbitration. Some systems give you a choice about whether to arbitrate, while others require it as part of a contract or court program.\u00a0<\/p>\n<h3><strong>Compulsory Arbitration<\/strong><\/h3>\n<p>Compulsory arbitration is growing in the United States. Compulsory arbitration means mandatory arbitration. This is particularly true in the areas of:<\/p>\n<ul>\n<li>Public sector employment disputes<\/li>\n<li>Court-annexed programs<\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/injury\/medical-malpractice.html\">Medical malpractice<\/a> disputes<\/li>\n<li>Credit card disputes<\/li>\n<li><a href=\"https:\/\/www.findlaw.com\/injury\/product-liability.html\">Consumer product<\/a> disputes<\/li>\n<\/ul>\n<h3><strong>Court-Annexed Arbitration<\/strong><\/h3>\n<p>Several states have legislation requiring critical public employees such as police officers, teachers, and firefighters to arbitrate as the final step in negotiating the terms of their\u00a0<a href=\"https:\/\/www.findlaw.com\/employment\/wages-and-benefits\/what-is-collective-bargaining-.html\">collective bargaining<\/a>\u00a0agreements. Court-annexed arbitration, also known as court-mandated arbitration, is compulsory for specific categories of civil cases in many state and federal district courts.<\/p>\n<p>Court-annexed arbitration differs from the traditional arbitration model in several ways. It often requires parties to arbitrate. Parties have a right to a trial if they aren&#8217;t satisfied with the arbitrator&#8217;s decision or their arbitration award. In some systems, though, parties must pay court costs or arbitrators&#8217; fees if they don&#8217;t have a better outcome at trial.<\/p>\n<p>Regardless of the type of arbitration under consideration, it&#8217;s essential to be fully aware of the benefits and any restrictions you may encounter when using arbitration to resolve legal issues.<\/p>\n<h2>Questions About Arbitration? Get Legal Help<\/h2>\n<p>Arbitration cases often resemble standard litigation. <a href=\"https:\/\/www.findlaw.com\/adr\/legal-help-and-resources\/using-an-adr-attorney.html\">Meeting with a lawyer<\/a> can help you understand whether an alternative dispute resolution process, such as arbitration, makes sense in your case.<\/p>\n<p>Arbitration is only one of several alternative dispute resolution methods. An attorney can guide you through the different dispute resolution procedures available to you. They can help you reach conflict resolution, whether that means moving forward with court proceedings, an arbitration hearing, or another route.<\/p>\n<p>FindLaw\u2019s directory of\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/alternative-dispute-resolution\/\" target=\"_blank\" rel=\"noopener\">ADR attorneys<\/a> can get you started. Enter your city or ZIP code for a list of qualified legal professionals near you. Because state law is relevant, your attorney should be licensed in your state. Your search results will also show important details about potential lawyers, like ratings and contact information.\u00a0<\/p>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-up\" 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<fieldset>\n                    <legend class=\"was-this-helpful__feedback-form-title\" tabindex=\"0\">Why was this not helpful?<\/legend>\n                    <div class=\"was-this-helpful__choose-option-message\" role=\"status\">\n                        <p class=\"was-this-helpful__choose-option-message-text\"><\/p>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--missing-info\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Missing Information\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--missing-info\"\n                        >Missing the information I need<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--complicated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Too complicated\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--complicated\"\n                        >Too complicated \/ too many steps<\/label>\n                    <\/div>\n                    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          class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--negative-other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__form-buttons-container\">\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--positive at-feedback-submit fl-button secondary\"\n                    type=\"submit\"\n                >\n                    <span class=\"fl-button-content\">Submit<\/span>\n                    <i\n                        class=\"fa fa-angle-right medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--cancel fl-button primary disabled\"\n                    type=\"reset\"\n                >\n                    <span class=\"fl-button-content\">Cancel<\/span>\n                    <i\n                        class=\"fa fa-times-circle medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n            <\/div>\n        <\/form>\n    <\/div>\n    <div class=\"was-this-helpful__thank-you-message\" role=\"status\">\n        <i class=\"was-this-helpful__thank-you-message-icon fa fa-check\"><\/i>\n        <p class=\"was-this-helpful__thank-you-message-text\" aria-live=\"polite\"><\/p>\n    <\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"fl-section-sidebar\"><div class=\"fl-editors-summary\" data-testid=\"fl-editors-summary\">\n    \n    <div class=\"fl-editors-summary-content\" data-testid=\"fl-editors-summary-content\">\n                    <h2>Can I Solve This on My Own or Do I Need an Attorney?<\/h2>\n                <div class=\"fl-editors-summary-content-main\" data-testid=\"fl-editors-summary-content-main\">\n            \n        <\/div>\n        <ul class=\"fl-list-style-none\">\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    <span data-sheets-root=\"1\">You may not need an attorney for simple, low-stakes disputes<\/span>\n\n                <\/li>\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    A lawyer can help prepare and present your case for the best possible outcome\n\n                <\/li>\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    <span data-sheets-root=\"1\">Arbitration is more adversarial and typically requires an attorney<\/span>\n\n                <\/li>\n                    <\/ul>\n                    <div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\">\n                <p>The arbitration and mediation processes can still be complex. An attorney can offer tailored advice and help protect your rights before the final decision.<\/p>\n\n            <\/div>\n                            <div class=\"fl-editors-summary-content-link fl-flex\" data-testid=\"fl-editors-summary-content-link\">\n                <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                <p class=\"find-attorney\"><a href=\"https:\/\/lawyers.findlaw.com\/alternative-dispute-resolution\/#USER_GEO\/?fli=esum:FL04\" target=\"_blank\" rel=\"noopener\">Find a local attorney<\/a><\/p>\n\n            <\/div>\n            <\/div>\n<\/div>\n\n\n\n<div class=\"email-subscription fl-mb30\">\n    <div class=\"email-subscription-header\">\n        <div class=\"email-subscription-header-content\">\n            <h3 class=\"fl-callout-sm fl-no-margin\">Stay Up-to-Date With How the Law Affects Your Life<\/h3>\n        <\/div>\n        <div class=\"email-subscription-header-image fl-flex fl-items-end\">\n            <img 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