The author is a partner in the New York City offices of Jones Day and teaches arbitration law at Brooklyn Law School. He is also a member of the American Arbitration Association’s Large Case Advisory Committee. The views expressed are solely those of the author and should not be attributed to the author’s firm or its clients, or any other organization.
Binding arbitration has received much more attention than non-binding. Steven Bennett, a practitioner who frequently writes about arbitration, remedies this imbalance. Here, he discusses how non-binding arbitration works and the advantages of this process. He distinguishes between private and court-referred processes and discusses how to design the process. He also addresses enforceability and the effect of a non-binding award.
When practitioners think of arbitration, they usually mean a process that results in a final, binding and enforceable award, which serves as an alternative to litigating in court. But there are many circumstances where a process that is not as binding as arbitration may be useful to parties involved in a dispute. Non-binding arbitration may be what the circumstances demand. However, this process rarely receives much attention. This article attempts to fill that gap.