Non-Binding Arbitration Advisory Awards

Non-Binding Arbitration Advisory Awards

Non-Binding Arbitration Advisory Awards are decisions rendered by an arbitrator following the arbitration process, which serve as recommendations rather than enforceable judgments. In this process, parties submit their dispute to an arbitrator or a panel of arbitrators, who listen to both sides and evaluate the evidence presented.

The key feature of a Non-Binding Arbitration Advisory Award is that it does not compel the parties to accept the decision. Instead, the award serves as an advisory opinion, providing guidance on how the dispute might be resolved if it were to proceed to a binding arbitration or litigation. Parties can use the advisory award to facilitate negotiations or to better understand the strengths and weaknesses of their respective positions.

For example, in a contractual dispute, if the arbitrator issues a Non-Binding Arbitration Advisory Award suggesting that one party has a stronger case, that party may leverage this information to negotiate a settlement. Conversely, the other party might choose to disregard the advisory award and either negotiate further or pursue litigation.

Overall, Non-Binding Arbitration Advisory Awards can be a valuable tool for dispute resolution, allowing parties to gain insight into potential outcomes without the risks associated with binding arbitration or court proceedings.