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Is an Arbitration Agreement Binding?

May 28, 2015 by West Coast ADR

Arbitration is an option that many people use to resolve a dispute without having to go to court. The benefits of arbitration are not just the avoidance of going to court, but it can also be more effective in coming to a civil agreement without strife and other complexities.

Are arbitration agreements binding?

The short answer is “Yes.” The purpose of arbitration is to have a resolution for an issue, the same as if you went to court. Whether it is a divorce, a child custody issue, a family property dispute or any other issue, if the final agreement is not binding, you may have wasted your time. In most instances, the agreements that come out of arbitration are not only binding, but cannot be appealed. An agreement is usually signed at the beginning of the arbitration process, specifying these rules and regulations.

Is arbitration private or public?

Arbitration is private; that is the opposite of most court cases, which are public. If the final arbitration agreement is filed with the court and needs to be enforced at some point, it may become public then. Arbitration agreements are enforceable by the court; however, they must be filed with the court before they can be enforced.

Do I need an attorney for arbitration?

You do not have to have an attorney for arbitration, but it is recommended. A mediation or arbitration process may require more than one type of professional to mediate or provide information regarding a part of the proceedings. An attorney can help provide evidence and resources, as well as oversee the process itself.

Once arbitration begins, can we change our minds and decide to settle?

Absolutely. The whole purpose of arbitration is to come to a settlement agreement that works for both parties involved. If the parties decide to settle on an agreement, the process can be completed.

Source: Alberta Arbitration & Mediation Society, “What is Arbitration?,” accessed May 28, 2015

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