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What is arbitration?

A plain-English guide to how private dispute resolution works, written for someone hearing the word for the first time.

The basics

A private process.

Arbitration is a way to resolve a dispute without going to court. Our AI decides on the record both sides submit, under our published Rules. Either side can add Human Review.

Here is the basic shape. One side, called the claimant, files a claim explaining what happened and what they believe they are owed. The other side, called the respondent, is formally notified and gets a fair chance to answer. Both sides submit their documents and evidence.

Arbitration is also private. There is no public courtroom and no public case file. The parties, the arbitrator, and the record: that is the whole room.

Compare

Arbitration, mediation, or court?

Three honest ways to resolve a dispute. They differ in who decides, how long it takes, and whether the outcome binds anyone.

ArbitrationMediationCourt
Who decides?Our AI decides on the record both sides submit, under our published Rules. Either side can add Human Review.The parties themselves. A mediator helps them talk but decides nothing.A judge, and in some cases a jury.
How long does it take?Usually weeks. Document-based cases move fastest.Days to months. It ends whenever the parties agree, or stop trying.Often months to years, depending on the court's calendar.
What does it cost?Filing and arbitrator fees, set by the forum's rules in advance.The mediator's fee, usually split between the parties.Filing fees plus legal costs, which often exceed a small claim itself.
How formal is it?Private and structured. Written rules, an official docket, a decision on the record.Private and informal. A guided conversation.Public and formal. Strict rules of procedure and evidence apply.

The part nobody says out loud: cost.

Arbitration has existed for a century, but it was priced for large commercial disputes. That pricing is why small claims almost never get there.

The major traditional forumsCommonly $1,500 to $10,000+ in fees per case, 90 to 180+ days
Going to courtModest filing fees, then service, hearings, and months of your time
This forum$99 per case, as little as three weeks

Traditional forum figures reflect typical published filing and administrative fee ranges before arbitrator compensation. Our single case pricing is on the pricing page.

Where it fits

When arbitration makes sense.

Arbitration is not for every dispute. It fits best when three things line up.

High volume, small dollar disputes

An unpaid invoice, a parking charge, an overdue fee. Each one is too small to justify a lawsuit, so most go unresolved. Arbitration gives them a forum that fits their size.

A written agreement both sides accepted

Arbitration rests on consent. The agreement can live in a signed contract, in posted terms, or in community rules such as an association's CC&Rs.

Facts that live in documents

Contracts, invoices, photos, and notices tell most of these stories. When the record is on paper, a case can be decided on the record, without anyone traveling to a hearing.

Vocabulary

Four words worth knowing.

Award

It states who prevails and what, if anything, is owed.

Claimant

The party who files the case and states what they believe they are owed.

Respondent

The party the claim is filed against. They are formally notified and may respond, settle, or counterclaim.

Docket

The official, chronological record of the case. Every filing, notice, and exhibit is entered on it.

Read the full glossary

See a real case file.

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