Binding Vs. Nonbinding Disputes

Are you progressing through alternative dispute resolution?

Whichever form of ADR you choose, you must decide whether you want the result of the dispute to be binding or nonbinding:

Binding – You’re obligated to accept the outcome of the dispute resolution proceeding, and the final order takes the form of an enforceable contract. The final order may often be filed with a court and becomes enforceable as a court order or judgement.

Nonbinding – You may choose to accept or reject the mediator’s opinion. In other words, the mediator doesn’t come in and make the final ruling that is then entered with the court as a judgement.

Nonbinding ADR is a two-way street, and the other side also has the right to reject the result.

Most mediation proceedings aren’t binding. In contrast, arbitration proceedings usually are binding, and they’re usually structured so that the arbitrator’s order can be filed with a court and enforced as a judgement.

Learn more about alternative dispute resolution.

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