The Woodlands, TX commercial litigation attorney Steven C. Earl discusses arbitration. In the realm of arbitration, the process serves as a private alternative to the traditional judicial system. Instead of appearing in court before an elected or appointed judge, parties in dispute opt to present their case before a tribunal. This tribunal can be comprised of either a single arbitrator or a panel of three, and it generally adheres to the guidelines set forth by a relevant association. For instance, disputes may be brought before the American Arbitration Association, subject to its commercial or construction rules. The number of arbitrators involved is determined by the mutual agreement of the parties, and the arbitrator holds significant authority, typically wielding near-complete control over the final judgment. Challenges to an arbitrator’s decision are confined to limited circumstances, resulting in a general acceptance of their determinations.

In contrast to the court system, where losing parties can appeal to a court of appeals composed of a panel of judges, some arbitration forums offer the possibility of appeals from one arbitrator’s decision to a panel of arbitrators. However, these appeals within arbitration do not afford the same extensive rights as those available in a traditional courtroom setting.