Arbitration is simply the name used to describe a particular method for resolving disputes between two or more parties. Just as problems may be resolved through negotiation or in extreme cases, litigation, so, too, may problems be resolved by the use of arbitration. In fact, arbitration may be used to resolve any type of dispute unless restricted by the arbitration agreement itself.

In an arbitration, a neutral person who is otherwise uninvolved in the dispute (the arbitrator) listens to the parties express their points of view and then renders the decision (called an award) based

upon the presentation of evidence. The process, in some respects, is similar to what takes place in a court of law. For instance, an attorney may represent any party to arbitration. However, unlike a court process, formal rules of evidence and procedure are not required and an active judge or jury will not decide the dispute. Nevertheless, the award issued by the arbitrator is binding upon the participants and can be enforced as if it were rendered in a court.

There is only a limited right to appeal an arbitration award. The parties must pay for the services of an arbitrator; and, if a party does not comply with an award, the prevailing party may be required to go to court to enforce the award.

Arbitration may be used to decide virtually any type of claim, including actions for breach of contract, misrepresentation and fraud. Certain types of claims are excluded by statute from arbitration under a real estate listing or sales agreement. Examples include bodily injury, wrongful death, foreclosure, marital dissolution, probate or eviction proceedings. Other limitations may appear in the clause itself. As a remedy, the arbitrator has the authority to award money damages, both actual and punitive, as well as specific performance.