Many contracts require the parties to participate in arbitration when there is a dispute. Arbitration would involve a neutral arbitrator to hear from both parties in a formal setting. The arbitrator would make a decision as to how the dispute is to be resolved. The decision by the arbitrator is binding and would be enforced in court.
If a contract does not require arbitration to resolve disputes, parties involved in a dispute can agree to voluntary, non-binding arbitration under Florida law. The decision by an arbitrator in a non-binding arbitration is not binding. Either party involved in non-binding arbitration may demand a trial. If a party demands a trial and receives a judgment in the suit that is less than the arbitration award, that party can be required to pay the other parties attorney fees and costs.
Widerman Malek, PL’s Attorney Ed Kinberg is a Qualified Arbitrator in the State of Florida who conducts both binding and non-binding arbitrations. Non-binding arbitrations are relatively informal and they can be a cost effective method for resolving a dispute.
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