What is non-binding arbitration, and how is it different from mediation?

Non-binding arbitration is a process in which a neutral arbitrator hears both sides of a dispute and then issues a decision, or award, on the merits — but that decision does not automatically bind the parties. It differs from mediation in a fundamental way: a mediator does not decide anything and instead helps the parties negotiate their own agreement, while an arbitrator actually evaluates the evidence and renders a decision. It also differs from binding arbitration, where the arbitrator’s award is final and enforceable. In non-binding arbitration, the award gives the parties a neutral, informed assessment of how their case might come out, while each side generally retains the right to reject the award and proceed to trial. This may help prompt a settlement, especially where an attorney uses the decision to help convince a client to view a potential result more realistically and therefore be more inclined to settle. By providing an impartial view of the merits of the case, the decision may also educate an attorney about pitfalls that he or she may not otherwise have considered.