In binding arbitration the arbitrator's award resolves the dispute and is enforceable as a judgment. Judicial review is limited to narrow statutory grounds such as corruption, evident partiality, and exceeding authority.
Errors of law and fact are generally not reviewable.
Alternative Names:
Binding Arbitration Agreement, Final Arbitration
Why it Matters?
The absence of meaningful appellate review is the central consequence, since an arbitrator who misapplies the law produces an award that stands. That risk cuts both ways and is why arbitrator selection matters more than in litigation, where an erroneous ruling can be corrected on appeal. Discovery is also typically limited, which favors the party with less need for the other side's documents.
Frequently Confused with
Related terms
Frequently asked questions
Can an arbitration award be appealed?
Why does arbitrator selection matter more?
