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Legal Arbitration and Neutral Assessment


The legal definition of arbitration is that it is non-court procedure for resolving disputes using one or more neutral third parties called the arbitrators. It is a faster and less expensive way of resolving disputes. Neutral assessment happens when a neutral gives nonbinding and reasonable evaluation to the dispute.

What are the methods of doing neutral assessment? The neutral assessment often uses mediation as a technique and prepares a settlement agreement between the concerned parties.

Quite often court adjourned arbitration is preferred. The Eastern District of New York is has a mandatory Court-Annexed Arbitration program. Here all civil cases are compulsorily designated for court annexed arbitration whenever money damages only are being sought, and the amount does not exceed $150,000 exclusive of interest and costs.

Some of the benefits of such arbitration include,

  • Savings in time as arbitration is done early
  • Money saved by avoiding litigation
  • Neutral qualified, impartial attorney
  • Right to full trial preserved during the process
  • Rules of evidence not rigidly followed
  • Panel of up to three neutrals can be requested

Remember that a mediator is different from an arbitrator. Unlike an arbitrator, a mediator has no power to impose a solution on the concerned parties but can only help them.

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About Julie Clements

Julie Clements

Joined the MOS team in March of 2008. Julie Clements has background in the healthcare staffing arena; as well as 6 years as Director of Sales and Marketing at a 4 star resort. Julie was instrumental in the creation of the medical record review division (and new web site); and has especially grown this division along with data conversion of all kinds.