Arbitration is similar to a non-jury trial in the public courts. It’s a binding hearing where the both parties are allowed to make opening statements, present their case, and end with closing statements. At the end of arbitration, the arbitrator makes the final decision and it is binding for both parties.
There are a couple types of Arbitrations:
In this type of arbitration, both parties agree beforehand to limit the award by setting a maximum and minimum amount allowed. The arbitrator is not given the amounts prior to the case being heard. By using this type of arbitration, both parties can limit their risk as it relates to the award. After hearing both sides, the arbitrator will award an amount that they think is fair for the circumstances. If the amount decided by the arbitrator is above or below the limits set, the predetermined maximum or minimum will be awarded accordingly. If the amount decided is within the predetermined limits set, that is the awarded amount.
This allows both parties to make either their final offer or demand. After hearing both sides present their case, the arbitrator then choses either the offer or demand without any changes. This method is chosen to discourage extreme positions in a case.
Our team of attorneys at Cohen, Feeley, Altemose & Rambo are known for our experience and are available to handle any type of arbitration you need in Pennsylvania or New Jersey. Call us at 610.490.8877 or contact us online.