What is Arbitration?

The United States Supreme Court noted in United Steelworkers of America v. Warrior & Gulf Navigation Company, 363 U.S. 574, 582 (1963) that "arbitration is a matter of contract." Parties to a contract can agree to resolve disputes privately through arbitration, rather than through a judicial system.

Public policy encourages resolution of disputes through arbitration. The United States Supreme Court has spoken clearly during the last three terms that arbitration is to be favored as a means of dispute resolution. Circuit City Stores, Inc. v. Adams, 532 U.S. 105 (2001); C & L Enterprises, Inc. v. Citizen Band Potawatomi Indian Tribe of Oklahoma, 532 U.S. 411 (2001); Green Tree Financial Corp. - Alabama v. Randolph, 531 U.S. 79 (2000). These cases only reflect a longer-term view that arbitration is to be encouraged.