Arbitrating

Arbitrating refers to the act of resolving a dispute or disagreement between two or more parties by having an impartial third party listen to both sides and make a binding decision. The arbitrator acts as a neutral judge, weighing the evidence and arguments presented to reach a fair and equitable settlement. This process is often chosen as an alternative to court proceedings, offering a potentially quicker, less expensive, and more private way to resolve conflicts. Arbitration is commonly used in legal, financial, and labor disputes.

Arbitrating meaning with examples

• The company and the union agreed to arbitrating the salary dispute, hoping to avoid a costly and time-consuming strike. An independent arbitrator listened to both sides, reviewed the contract, and rendered a decision. Both parties were obligated to follow the arbitrator's binding judgment, thus reaching an amicable outcome.
• After months of negotiation failed to resolve their business partnership disagreement, the two partners decided on arbitrating. They hired a lawyer to act as the arbitrator, presented their financial information and argued their cases. The final decision ensured a smoother, less hostile dissolution of the partnership and saved money.
• The couple heading for divorce chose to settle their division of assets by arbitrating. They each presented their financial statements and desires to an agreed-upon mediator/arbitrator. That resulted in a binding settlement about property, allowing them to finalize the divorce relatively quickly, outside of the court system.
• Facing a contract disagreement with a supplier, the construction firm opted for arbitrating. The arbitrator examined the contract details, examined the work completed and judged on whether the supplier met their contractual obligations. The decision was considered fair by both parties, promoting a good business relationship moving forward.
• In the wake of a contentious insurance claim denial, the policyholder chose to settle by arbitrating. A neutral arbitrator reviewed the claim, considered the policy's terms, and listened to both the policyholder's and the insurance company's positions. The outcome resulted in the policyholder receiving a partial payout, satisfying both sides.