There are a few different types of alternative dispute resolution options that you have in Pennsylvania. You can use ADR in various legal situations instead of going through a standard court trial. It can enable you to save time and money, while also having a larger role in the outcome of your case. One ADR option is arbitration, which the American Bar Association explains is the process where you and the other party agree to allow a third party to decide the case.
This may seem similar to your other options, including a court trial, but arbitration has some distinctions. First, unlike another common type of ADR, mediation, the third party or arbitrator has decision-making power. He or she is not there to assist you with making decisions and coming to an agreement.
Other types of ADR work to find compromise and encourage you to work together with the other party to solve the issue at hand. Arbitration does not do that. It is very similar to a court trial because you present your arguments and evidence in the same manner. However, the legal details are different. The overall process is far less formal.
Another distinction is that arbitration can be binding or non-binding. This means that you do not have to accept the ruling of the arbitrator. You and the other party must both accept it for it to be legally upheld.
Some reasons you may choose arbitration are that it moves your case along quickly and can save your money, which is similar to other types of ADR. This information is for education and is not legal advice.