Florida Arbitration Services
Arbitration as an Alternative Dispute Resolution (ADR)
Arbitration involves each party presenting their case to a neutral third party (an arbitrator) who considers the issues and gives their decision (called an award). Arbitration is a form of Alternative Dispute Resolution.
An arbitrator has the power to make a range of awards depending on the circumstances of the case. Awards may include:
- Monetary compensation
- Injunctions
- Declaratory relief
- Legal fees
- Punitive damages
- Attorneys’ fees and costs
Arbitration can be binding or non-binding. Binding means an arbitrator’s award is final, whereas the parties can reject an arbitrator’s non-binding award and elect to go to trial.
Arbitration is less formal than trial proceedings and is often more cost-effective and quicker. However, it is more formal than other forms of ADR, such as mediation. A potential third option would be a hybrid arbitration-mediation. This presents the parties with a third option of resolution, especially in Court Ordered Non-Binding Arbitration matters where the parties were not previously afforded the opportunity to participate in mediation.
Arbitration could potentially avoid time-consuming and expensive litigation. It can also be helpful for parties who want an impartial, informed decision-maker to provide an objective evaluation of the respective positions of the involved parties. It can be a useful avenue for disputes involving technical arguments.
Types of Arbitration: Binding vs. Non-Binding
Arbitration may be mandatory binding or non-binding. Each produces benefits and disadvantages and should be considered and weighed accordingly.
Binding Arbitration
In binding arbitration, the arbitrator’s award is final. The parties cannot request a trial. The parties also cannot appeal the arbitrator’s decision, except in exceptional and limited circumstances. Binding arbitration can either be agreed to by the parties, or addressed in an existing contract between the parties.
Non-Binding Arbitration
In non-binding arbitration, the arbitrator’s award is advisory. Both parties have the right to reject it and opt to go to trial. Non-binding arbitration is often used in cases where the parties want to play out the strengths and weaknesses of their case. In doing so, they can often resolve the dispute. Florida Courts may also order the parties to a litigated case to non-binding arbitration.
A Third Option: Hybrid Arbitration-Mediation
A potential compromise to utilize the benefits of both mediation and arbitration, would be a hybrid arbitration-mediation. In this process, the Florida Dispute Resolution, LLC neutral would serve in a dual role as both the arbitrator and mediator. The parties begin by presenting their positions, serving as both the arbitration presentation and mediation opening statement. The neutral arbitrator/mediator will then take a brief break to outline the arbitration award, which will not be published to the parties. The process then reconvenes as a mediation. At this point, the confidentiality of mediation would attach and the parties proceed with the mediation process. The arbitration award is only published to the parties in the event the mediation impasses. In the case of a hybrid arbitration-mediation, the parties are afforded the benefits of both Alternative Dispute Resolution processes. This option provides the parties the ability to resolve their disputes in the manner preferred by the parties.
Contact Florida Dispute Resolution, LLC to Schedule an Arbitration
At Florida Dispute Resolution, LLC, our impartial and competent Florida Qualified Arbitrators render a professional and competent arbitration award to assist the parties in the resolution of their disputes. Contact us at or 954-416-8816 to schedule a nonbinding or binding arbitration, or an arbitration-mediation hybrid session. Our calendar is included on our website and updated in real time to assist in a seamless scheduling process.
