What is the process of resolving legal disputes by submitting them to a neutral third party called?

The process of resolving legal disputes by submitting them to a neutral third party is known as arbitration. In arbitration, the parties to a dispute present their case to an arbitrator or a panel of arbitrators, who then make a binding decision based on the evidence and arguments presented. This process is generally less formal than litigation and can be quicker and more cost-effective, making it an appealing option for many businesses and individuals seeking resolution.

Arbitration is characterized by its binding nature, meaning that the decision made by the arbitrator is typically final and enforceable in the same manner as a court judgment, limiting the ability for parties to appeal the outcome. This is in contrast to mediation, where the mediator facilitates a conversation between the parties to help them reach a mutual agreement, but does not have the authority to impose a decision.

In litigation, disputes are resolved through the court system, and the process tends to be more formal, involving procedures established by law. Facilitation, while similar to mediation in its focus on communication and negotiation, does not involve a neutral third party making binding decisions either.

Therefore, arbitration represents a distinct form of dispute resolution that incorporates the use of a third party to reach a conclusive and binding outcome.