A binding route to resolution
Arbitration is a structured dispute resolution process in which the parties appoint an arbitrator to decide the dispute or a defined issue. Unlike mediation or neutral evaluation, arbitration leads to a binding outcome, subject to the terms of the arbitration agreement and the applicable legal framework.
For legal teams managing personal injury, clinical negligence or related disputes, arbitration may be considered where the parties want a final decision without progressing through the full court process.
How arbitration differs from mediation
Mediation is a negotiated process. The mediator helps the parties explore a settlement, but the parties decide whether to agree on terms. Arbitration is a decision-making process. The arbitrator considers the material presented and issues an award.
This distinction matters. Arbitration may be appropriate where the parties want certainty. Mediation may be preferable where the parties want flexibility and control over the settlement terms. In some cases, mediation may take place first, and arbitration may be considered later if an agreement is not reached.
When arbitration may be appropriate
Arbitration may assist where:
- The parties require a final decision
- A defined issue is preventing resolution
- The parties want to avoid further court delay
- Confidentiality is important
- A specialist decision-maker would be useful
- The parties want a process that can be shaped around the dispute
- The cost and time of litigation are disproportionate
It may be used for lower-value disputes where speed and certainty matter, or for more complex disputes where the parties want a specialist process.
The Legal Framework
Arbitration in England and Wales has a statutory basis under the Arbitration Act 1996, as amended by the Arbitration Act 2025. The 2025 Act amends the 1996 Act rather than replacing it. The precise structure of any arbitration should be agreed in advance and recorded clearly.
Process & Scope
Before arbitration begins, the parties should agree on the issues to be decided, the arbitrator, procedure, timetable, evidence, submissions, costs approach and whether the arbitration will be paper-only, online or involve a hearing.
This agreed structure is important. It gives the parties a defined process and reduces the risk of uncertainty once the arbitration is underway.
Advantages Of Arbitration
Arbitration can provide certainty, confidentiality and procedural flexibility. It can be tailored to the value and complexity of the dispute. It may also allow the parties to select an arbitrator with relevant subject-matter experience.
For claims teams and legal representatives, this can support practical case management where a final decision is needed but continued litigation is not commercially attractive.
Points to consider
Arbitration is not the same as mediation. The binding nature of the outcome means legal teams need to consider suitability carefully, obtain client authority and agree the process clearly.
Questions to consider include: is a binding decision wanted, which issues need to be decided, what evidence is required, how costs will be handled and whether arbitration is proportionate compared with court or further negotiation?
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FAQs
Yes. Arbitration is generally intended to produce a binding award, subject to the agreed terms and applicable law.
Yes. The parties may agree to arbitrate if mediation does not resolve the dispute, either as a separate process or within a pre-agreed structure.
No. It is most suitable where the parties want a binding decision and are prepared to commit to that process.
Yes, where the parties agree, and the issue is suitable for determination on the papers.
Appeal rights in arbitration are limited and depend on the arbitration agreement and the applicable legal framework. Legal representatives should advise clients on appeal rights before agreeing to arbitrate.
Make An Enquiry
Share a few details about the claim, the parties and the stage of the case. We will come back with a suggested ADR route and the next practical step.
Initial Conversation
Tell us about the claim, the parties and the stage you are at.
Mediator Selection
You select a suitable independent specialist mediator.
Preparation
Pre-mediation discussions help clarify issues and prepare the day properly.
Mediation Day
A structured process focused on helping parties reach resolution, often within a single day.
