ARBITRATION

arbitration,n. A method of dispute resolution involving one or more neutral third parties who

are  usu.  agreed  to  by  the  disputing  parties  and  whose  decision  is  binding.  —  Also  termed

(redundantly) binding arbitration. Cf. MEDIATION(1). [Cases: Arbitration    1. C.J.S. Arbitration

§§ 2–3.] — arbitrate,vb. — arbitral,adj.

ad hoc arbitration.Arbitration of only one issue.

adjudicative-claims arbitration.Arbitration designed to resolve matters usu. handled by courts

(such as a tort claim), in contrast to arbitration of labor issues, international trade, and other fields

traditionally associated with arbitration.

compromissory  arbitration.An  international  arbitration  grounded  on  a  mutual  promise  to

define the scope of the dispute and abide by the arbitrator’s decision. See COMPROMIS.

compulsory arbitration.Arbitration required by law or forced by law on the parties.

final-offer  arbitration.Arbitration  in  which  each  party  must  submit  a  “final  offer”  to  the

arbitrator,  who  may  choose  only  one.  •  This  device  gives  each  party  an  incentive  to  make  a

reasonable offer or risk the arbitrator’s accepting the other party’s offer. The purpose of this type of

arbitration is to counteract arbitrators’ tendency to  make  compromise  decisions halfway between

the two parties’ demands.

grievance arbitration. 1. Arbitration that involves the violation or interpretation of an existing

contract. • The  arbitrator  issues a  final  decision  regarding  the  meaning  of  the  contractual  terms.

2.Labor  law.  Arbitration  of  an  employee’s grievance,  usu.  relating  to  an  alleged  violation  of  the

employee’s rights under a collective-bargaining agreement. • The arbitration procedure is set out in

the collective-bargaining agreement. Grievance arbitration is the final step in grievance procedure.

—  Also  termed  rights  arbitration.  See  GRIEVANCE  PROCEDURE.  [Cases:  Labor  Relations

434.5.]

“The  great  majority  of  today’s  collective  bargaining  agreements  provide  for  an  impartial

arbitrator to hear and decide grievances under the bargaining agreement. The details of grievance

arbitration vary considerably among agreements.” Douglas L. Leslie, Labor Law in a Nutshell 264

(3d ed. 1992).

interest arbitration.Arbitration that involves settling the terms of a contract being negotiated

between the parties; esp., in labor law, arbitration of a dispute concerning what provisions will be

included in a new collective-bargaining agreement. • When the parties cannot agree on contractual

terms, an  arbitrator  decides.  This type  of  arbitration  is  most common  in  public-sector  collective

judicial arbitration.Court-referred arbitration that is final unless a party objects to the award.

rights arbitration.See grievance arbitration.

voluntary arbitration.Arbitration by the agreement of the parties. [Blacks Law 8th]