Have you ever wondered how arbitration works.  Arbitration is a form of alternative dispute resolution (ADR) where a neutral third party (the arbitrator) resolves a dispute outside the court system. It's commonly used in commercial contracts, employment agreements, consumer disputes, and more. Here's how it works:

Some of the biases a arbitrator can carry are how often they have been ask to be the arbitrator by an attorney or a party or even an industry.  Some of the other biases include past experiences, legal know how and prior case experience.  It is important to pick a great arbitrator.    

Basic Process of Arbitration

1. There must be an Agreement to Arbitrate

   • It normally starts with a contract.  Parties agree to resolve disputes through arbitration rather than court. This is often done through a clause in a contract.

   • Example: “Any dispute arising under this agreement shall be resolved by binding arbitration…”  Some arbitration clauses are very specific, they even say who and where the arbitration will take place and who pays for the arbitration fees.  

2. Selection of Arbitrator(s)

   • There are multiple forums for arbitration.

   • Parties choose one or more arbitrators (often 1 or 3).

   • Arbitrators are often experts in the relevant field (law, finance, construction, etc.).

3. Pre-Hearing Procedures

   • Similar to a court case: submission of statements of claim and defense.

   • Limited discovery (exchange of evidence and documents), though typically less extensive than in court.

4. The Hearing

   • Each side presents evidence and witnesses.

   • More informal than court, but still structured.

   • Arbitrator(s) may ask questions.

5. Decision (Award)

   • Arbitrator issues a binding decision (called an award).

   • This is usually final and difficult to appeal.

   • Courts will enforce arbitration awards unless there's proof of fraud, bias, or serious procedural misconduct

Arbitration is a great solution for disputes in healthcare.  Primarily because all information and decisions are typically kept confidential.  The large companies prefer that.