Variations on Arbitration

High-Low Arbitration: Also known as “Bracketed Arbitration,” is an arbitration wherein the parties have agreed in advance to the parameters within which the arbitrator may render an award. If the award is lower than the pre-set “low,” the defendant will pay the agreed-upon low figure; if the award is higher than the pre-set “high,” the plaintiff will accept the agreed-upon high figure; if the award is in between, the parties agree to be bound by the arbitrator's figure. The high and low figures may or may not be revealed to the arbitrator.

Baseball Arbitration: A form of binding arbitration wherein each of the parties chooses one and only one number, and the arbitrator may select only one of the figures as the award. In a baseball arbitration, there are only two possible outcomes, i.e. the figures proposed by each party. The arbitrator cannot “split the baby.”

Non-Binding Arbitration: A procedure conducted much like a (binding) arbitration, except that when the arbitrator issues the award after the hearing, it is not binding on the parties and they do not give up their right to a jury trial or binding arbitration. In that case, the arbitrator's award is merely an advisory opinion. Many cases go to settlement or (binding) arbitration after this phase, or they can choose to go to a trial.