Skip to content
Glossary

What Is Arbitration?

Arbitration is a private dispute-resolution process in which an impartial arbitrator reviews evidence and arguments, then issues a decision about the dispute. Personal injury and insurance cases may use arbitration when the parties agree to it or when a contract requires it. The process follows defined procedures, but it is less formal than a courtroom trial.

Quick Facts About Arbitration

Category

Dispute resolution process

Used for

Insurance and injury disputes

Common confusion

It is not the same as mediation

Also called

Private arbitration

Often discussed with

Insurance Bad Faith Lawyer

Key Takeaways About Arbitration

  • An arbitrator decides the dispute instead of a trial judge or jury.
  • The parties present evidence and arguments under set procedures.
  • Arbitration is not the same as informal settlement negotiation.

How Arbitration Works

Hands point to an arbitration document beside a gavel on a wooden desk

Arbitration begins when the parties agree to submit a dispute to an arbitrator, or when an applicable agreement requires that process. Each side presents relevant documents, testimony, and legal arguments under procedures set by the arbitrator or governing agreement. The arbitrator then evaluates the record and issues a decision.

Related glossary terms: Demand Letter, Medical Records, Uninsured Motorist.

The decision may be binding or nonbinding, depending on the agreement and applicable law. Binding arbitration generally limits the parties' ability to pursue the same dispute in court after the decision. Mediation differs because a mediator helps the parties negotiate but does not decide the outcome. In an insurance dispute, arbitration may address whether coverage applies, whether the insurer handled a claim properly, or what amount the policy requires.

A person studies an arbitration definition on a computer while holding a magnifying glass and pen at a desk

From the Atlanta Auto Law team

When we assess arbitration in an insurance bad faith matter, we review the policy, dispute-resolution language, claim file, and communications. We also identify whether the process is binding and what issues the arbitrator may decide. That review helps us prepare the evidence and arguments that address the actual dispute.

Arbitration in Practice: A Real-World Example

An insurer denies a covered injury claim, and the policy sends certain disputes to arbitration. We present the policy language, medical records, claim communications, and evidence about the insurer's handling of the claim for the arbitrator's review.

Related Terms

Demand Letter

A demand letter is a written settlement request sent to an insurer or opposing party after…

Medical Records

Medical Records are written or electronic files that document a patient's care, condition, testing, treatment, and…

Uninsured Motorist

An Uninsured Motorist is a driver who has no liability insurance available to pay for injuries…

Subrogation

Subrogation is a legal process that allows an insurer or another payer to seek repayment from…

Atlanta Auto Law

Have Questions About Arbitration?

Contact Atlanta Auto Law for practical guidance on Arbitration and related personal injury attorney work in Druid Hills.

The information on this website is for general informational purposes only and is not legal advice, does not create an attorney-client relationship, and may not reflect current law in Druid Hills, Georgia, United States. Every situation is different; consult a licensed attorney about your specific matter. Prior results do not guarantee a similar outcome.

(678) 235-3870