What is an arbitrator's award typically considered?

An arbitrator's award is typically regarded as final and binding, which means that once the arbitrator makes a decision regarding the dispute, the parties involved are generally required to adhere to that decision. This characteristic is a fundamental principle of arbitration, making it an attractive alternative to traditional court litigation. The binding nature of the award provides certainty and closure to the dispute resolution process, allowing parties to move forward without the potential for further legal challenges regarding the same issue.

Arbitration is designed to be a definitive resolution method, and even though there are limited circumstances under which a court might review or set aside an arbitrator’s award, these instances are rare and typically involve very specific legal grounds such as issues of fairness or improper conduct. This binding nature distinguishes arbitration from other alternative dispute resolution methods, like mediation, where the outcome is not binding unless the parties agree otherwise.

The finality of an arbitrator’s award incentivizes parties to present their best case during the arbitration process, knowing that the arbitrator's decision will likely be the last word on the matter unless exceptional circumstances arise.