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.
Non-binding arbitrations are relatively informal and they can be a cost effective method for resolving a dispute.