What is the role of arbitration in alternative dispute resolution?

Arbitration plays a vital role in alternative dispute resolution by serving as a structured process where a neutral third party is appointed to resolve disputes between parties. The key feature of arbitration is that the decision made by this neutral arbitrator is binding, meaning that the parties are obliged to adhere to the outcome as if it were a court judgment. This offers advantages such as quicker resolution times than traditional court proceedings, reduced costs, and the ability to choose an arbitrator with expertise relevant to the dispute.

The binding nature of the decision gives arbitration seriousness and enforceability, making it an attractive option for parties seeking a final resolution without entering the lengthy process of litigation. Additionally, arbitration procedures can often be tailored to the needs of the parties, allowing for flexibility not typically found in a courtroom setting.