What do I need to know about arbitration before I enter into it?

Before entering into arbitration, it is important to understand some key aspects of the legal process. First, arbitration is a form of dispute resolution in which two parties agree to have their dispute settled by a third-party arbitrator—a neutral person or group of people. This third-party listens to both sides and renders a legally binding decision. Unlike a judge or jury in a court of law, the arbitrator does not have the ability to impose legal sanctions. In Maryland, parties must mutually agree to the use of arbitration and they must sign a written agreement. They can also agree on certain aspects of arbitration, such as the selection of an arbitrator, the selection of a specific arbitration process, the arbitration venue, the rate of the arbitrator’s fees, and other rules or guidelines governing the arbitration process. Under Maryland law, the parties involved in an arbitration dispute have certain rights and responsibilities. The parties must submit to the jurisdiction of the arbitrator and be bound by the decision that is made. They also have the right to present evidence and to cross-examine witnesses. All communications during an arbitration process are confidential, and generally cannot be used in any other legal proceeding. Finally, if the parties to an arbitration dispute are unsatisfied with the decision of the arbitrator, they have the right to appeal. However, parties should be aware that appeals are often difficult and expensive to pursue. In summary, before entering into arbitration in Maryland, it is important to understand the scope of the process and the rights and responsibilities of both parties. Doing so can help ensure that the arbitration process is effective and that the outcome is legally binding.

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What do I need to know about arbitration before I enter into it?

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