Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Feb 20, 2013

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Non-binding or advisory arbitration is a step up from mediation in the realm of alternative dispute resolution. It allows parties a forum to debate their case without the fear of a permanent verdict. Non-binding arbitration is a formal process with specific governing rules and procedures that are implemented by most businesses and some courts as an alternative to a full trial.

Advantages of Non-Binding or Advisory Arbitration

Non-binding or advisory arbitration offers numerous benefits over both traditional court and binding arbitration. Non-binding arbitration is private. This means that the decision will not become public record, nor does anyone even have to know that the parties where in dispute. Non-binding arbitration allows for the formal actions of a trial such as discovery without the weight of appeals and pointless motions. In fact, because the decision is merely advisory, many attorneys and clients tend to relax and look at their case more objectively than in a formal courtroom. Finally, non-binding or advisory arbitration can be rejected. If one or both parties do not agree with the arbitrator’s decision, they can choose to litigate instead. Although, the common trend has been that due to the continually rising costs of litigation, most losing parties of an arbitration will seek out a settlement instead of taking the case to court.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption

The Non-Binding or Advisory Arbitration

During the non-binding or advisory arbitration, the two parties are given time to organize a formal case that will be heard by the arbitrator. Both parties will sign a non-disclosure statement, and conduct limited discovery for the arbitration proceeding. After the preparation time, the attorneys will hold a formal trial in front of either a judge or attorney who will render a decision and amount for the losing party to pay. Typically the arbitration agreement will have a time limit for rejection of the arbitration. If neither party rejected the arbitration decision before the deadline, it is considered the valid settlement agreement. Also, if it was ordered by the court, it will become the final judgement.