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  • Writer's pictureAcclaim Law Group

What is Arbitration?

According to the American Bar Association, “Arbitration is a private process where disputing parties agree that one or several individuals can make a decision about the dispute after receiving evidence and hearing arguments.” Arbitration allows both parties to resolve the dispute without going to court. Arbitration is different from mediation because there is a neutral party who will make a decision after the evidence and arguments are presented. The neutral party is also known as the arbitrator.

The arbitrator will issue a ruling upon hearing all the arguments. If there is an award, it can either be binding or non-binding. When arbitration is binding both parties give up their right to a trial and agree to accept the arbitrator’s decision. Non-binding arbitration is a more flexible option where both parties can request a trial if they do not accept the arbitrator’s decision.

When is arbitration an option in an auto accident claim? Usually, arbitration becomes an option when you are making a claim with your own insurance company because the at-fault party either did not have auto insurance, or let their auto insurance coverage lapse. This type of claim is called an Uninsured Motorist claim. When dealing with an Uninsured Motorist claim you should ask your attorney if arbitration is appropriate in your particular case.

Disclaimer: While we always seek to establish accuracy when publishing articles, this piece is not intended to provide legal advice, and should not be used as such. Each individual case will differ and should be discussed with an attorney or legal expert. If you would like to inquire about pursuing a claim, please contact us at (858) 252-0781 or email

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