Arbitration is an option that involves a third-party neutral called an arbitrator. Arbitrators, unlike mediators, act like a judge, as they hear testimony, take evidence, and issue actual binding decisions. This option is more like an informal trial. This process can be helpful to those who have reached an impasse in mediation or other types of negotiations. And rather than filing a lawsuit and litigating a case, the parties can submit one or more unresolved issues to a trained professional. The parties will get a final decision without the added pain and expense of preparing for and participating in trial.

The main challenge this process presents is that the parties lose complete control of their outcome. Unless the parties agree otherwise, the final decision is binding.