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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