Where it comes from
Some court systems send certain civil cases, often those with smaller amounts in dispute, to an arbitration program before trial, and in New York some courts run such programs in which a party unhappy with the award can demand a new trial. Contracts sometimes provide for advisory arbitration as a step before litigation, and parties can also agree to it after a dispute arises. Whether a clause is binding or non-binding often depends on its exact wording, and courts look closely at language that is unclear. Non-binding arbitration also differs from mediation: an arbitrator hears evidence and decides, while a mediator helps the parties negotiate without deciding anything.
What rejecting the decision involves
If neither side accepts the award, the case usually moves on to court, but rejection is not always free. Some programs require a demand for a new trial within a short window, and if no demand is made, the award can become a judgment. Some court programs also require the rejecting party to pay certain costs or fees, or impose them if that party does no better at trial. Under a contract, the agreement may say what happens next and whether the arbitrator's findings can be used later. Knowing these rules before the hearing affects how much effort to invest in it.
Treating it as a real hearing
Even an advisory decision gives both sides a neutral view of the evidence, and that view often drives settlement. Presenting the case well means preparing witnesses, organizing documents, and laying out a clear account of damages, much as for a binding hearing on a smaller scale. A favorable award can encourage the other side to settle, and an unfavorable one tells you something about the risks at trial. We review the program rules or contract terms with you, plan the presentation, and discuss in advance how you would respond to different outcomes. That way the decision to accept or reject can be made calmly and on time.
