Arbitration allows disputes to be decided outside the traditional courtroom process by one or more arbitrators. Its legal effect depends heavily on the arbitration agreement, governing federal or state law, procedural rules selected by the parties, and the type of dispute involved.
An arbitration award can become highly significant because courts generally review arbitration decisions through specialized statutory procedures rather than treating them like ordinary trial judgments.
How Federal Arbitration Law Works
Title 9 of the United States Code contains the Federal Arbitration Act and related federal arbitration provisions. Chapter 1 addresses matters including enforcement of arbitration agreements, stays of court proceedings, orders compelling arbitration, arbitrator appointments, witnesses, awards, confirmation, vacatur, modification, and appeals.
A person using digital information sources to research a dispute should still begin with the actual arbitration clause. Its language may determine which disputes, procedures, and decision-makers are covered.
What Happens Before an Arbitration Hearing?
A typical arbitration begins with a demand or notice under the governing agreement and procedural rules. The parties may then select an arbitrator, exchange information, resolve preliminary issues, submit written arguments, and prepare witnesses or exhibits.
The process can be simpler than full civil litigation, but that does not mean every arbitration is informal.
General independent web reading may describe arbitration as a single process, yet procedures differ substantially depending on the contract, administrator, industry, claim, and applicable law.
| Stage | Typical Activity | Issue to Review |
|---|---|---|
| Agreement | Determine arbitrability | Scope of clause |
| Pre-hearing | Exchange information | Procedure and deadlines |
| Hearing | Evidence and arguments | Applicable rules |
| Award | Arbitrator decides dispute | Enforcement or challenge |
How Arbitration Awards Become Enforceable
Under 9 U.S.C. § 9, parties may seek court confirmation of an arbitration award when statutory and contractual requirements are met. The statute addresses confirmation procedure and provides a one-year period for an application in circumstances covered by that section.
Confirmation can convert an award into a judgment that may be enforced through judicial mechanisms.
Anyone following arbitration disputes through general web journalism should distinguish between an arbitrator issuing an award and a court later confirming, vacating, correcting, or enforcing it.
Can an Arbitration Award Be Challenged?
Federal arbitration law provides specific grounds and procedures for seeking to vacate or modify certain awards. A disappointed party does not ordinarily receive unrestricted appellate review merely because it believes the arbitrator reached the wrong result.
Timing matters here as well. Challenges to an award can be governed by short statutory periods, making prompt review of the award and arbitration record important.
Title 9 also contains special rules about which arbitration-related court orders may be appealed. Section 16 permits appeals from specified orders while limiting appeals from certain interlocutory orders directing arbitration to proceed.
What People Often Get Wrong About Arbitration
One misconception is that arbitration is always faster, cheaper, or simpler than court. Costs and complexity depend on the dispute, number of hearing days, discovery, arbitrator fees, experts, and procedural rules.
Another mistake is assuming that signing any contract containing the word “arbitration” answers every enforcement question. Contract formation, scope, federal and state law, statutory exceptions, and the wording of the clause can all matter.
Arbitration law is highly dependent on context.
When to Get Legal Help
Consider legal advice before signing a significant arbitration agreement, after receiving an arbitration demand, when deciding whether a dispute belongs in arbitration, or immediately after receiving an unfavorable award.
Counsel can review the clause, applicable law, procedural deadlines, available objections, evidence requirements, and any statutory time limit for confirmation or challenge.
Frequently Asked Questions
Is arbitration the same as mediation?
No. An arbitrator ordinarily decides the dispute and may issue an enforceable award. A mediator generally helps parties negotiate a voluntary settlement rather than imposing a decision.
Can someone refuse arbitration after signing an agreement?
It depends on whether a valid and enforceable agreement covers the dispute and whether any applicable legal defense or statutory exception applies.
Is an arbitration award automatically a court judgment?
Not necessarily. A prevailing party may need to use the applicable confirmation and enforcement procedures before obtaining a court judgment based on the award.
Read the Arbitration Clause Early
Arbitration disputes often turn on procedural questions long before the merits are fully heard. Review the agreement, governing rules, deadlines, selected forum, and available court procedures as soon as a dispute develops. Waiting until after an award is entered can sharply reduce the practical options available.
This article provides general legal information and is not a substitute for advice from a qualified attorney.