What happens if an agreement is not reached at an arbitration hearing?
If an agreement is not reached at an arbitration hearing in California, the parties involved will be required to take their dispute back to the court system. This process is referred to as de novo review. Basically, the parties will have to start the case over again in court as if the arbitration never occurred. This means that all of the evidence and arguments presented in the arbitration would need to be presented again in court. In de novo review, the judge in the case will have the same authority to make a ruling as he or she would have had when the case was first presented to the court. The judge will look at all of the evidence to determine which side he or she believes has the best argument. After considering all of the evidence, the judge will make a decision, and the ruling will stand regardless of the outcome of the arbitration. Although the process of de novo review can be time consuming and expensive for the parties involved, it is an important part of the alternative dispute resolution system in California. The parties involved can rest assured that if an agreement is not reached at an arbitration hearing, they still have the right to have their dispute heard and decided in court.
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