Arbitration
Definition:
Arbitration is a private dispute resolution process in which the parties agree to submit their conflict to a neutral third party, called an arbitrator, instead of going to court. The arbitrator reviews evidence, hears arguments, and issues a binding or non-binding decision known as an award. It is often faster, less formal, and more cost-effective than traditional litigation. Arbitration is commonly used in business, employment, real estate, and consumer disputes.
Arbitration Information
Arbitration provides an alternative to courtroom litigation by allowing parties to resolve disputes confidentially and efficiently. It can be voluntary or required under a contract’s arbitration clause. The process typically involves selecting one or more impartial arbitrators, presenting evidence and arguments, and receiving a written decision. Unlike mediation, arbitration results in a definitive ruling that can be enforced in court. Many contracts use arbitration to reduce legal expenses and delays while preserving some level of privacy and control over the dispute process.
Florida Legal Definition
Under Florida Statutes Chapter 682, known as the Florida Arbitration Code, arbitration is defined as a method of resolving disputes outside of court through a binding decision by an arbitrator. The statute governs how arbitration agreements are enforced, how arbitrators are appointed, and how awards are confirmed or challenged in court. Florida law strongly favors arbitration as a valid and enforceable alternative to litigation when agreed upon by the parties. Arbitration awards issued under this chapter have the same legal effect as court judgments once confirmed by a circuit court.
How It’s Used in Practice
In practice, arbitration is used across many sectors, including construction, employment, business contracts, and real estate transactions. Businesses often include mandatory arbitration clauses in contracts to streamline dispute resolution. In Florida, arbitration is frequently used in condominium and homeowner association disputes, commercial lease disagreements, and professional malpractice claims. Lawyers play a key role in drafting arbitration agreements and representing clients during proceedings. The arbitration award can be enforced by the court, making it a binding and final resolution mechanism in most cases.
Key Takeaways
- Arbitration is a private process for resolving disputes outside of court before a neutral arbitrator.
- It can be binding or non-binding, depending on the parties’ agreement.
- Governed in Florida by the Florida Arbitration Code (Chapter 682, Florida Statutes).
- Commonly used in contracts, employment, business, and real estate matters.
- Offers faster, more confidential, and often less expensive resolution compared to litigation.
Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney–client relationship with Barnes Walker, Goethe, Perron & Shea, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.
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