by Mike Dover

Created on: July 11, 2011   Last Updated: July 12, 2011

Court annexed arbitration and court sponsored mediation are both forms of court ordered alternative dispute resolution (ADR). ADR is the use of alternative procedures to resolve disputes without the necessity of a court trial. The US federal courts and most state courts utilize ADR procedures to assist parties in settling their disputes without judicial intervention. Mediation and arbitration are 2 of the most frequently employed types of ADR.

What is court annexed arbitration?

Court annexed arbitration is a mandatory, but usually nonbinding, form of ADR in which a court appoints a neutral third party to act as the arbitrator for the parties’ dispute. Court annexed arbitration is generally used for relatively small cases involving claims for money damages. Court annexed arbitration is believed to be a more efficient and economical process for resolving small cases involving claims for money damages.

How does court annexed arbitration work?

If a party files a lawsuit that is subject to court annexed arbitration, the court will refer the case for arbitration. The court appoints an arbitrator to conduct the arbitration hearing. Most jurisdictions allow the parties to conduct a limited amount of discovery of the other party’s case before the arbitration hearing. The arbitrator will schedule the hearing and notify the parties of the hearing.

At the arbitration hearing, both parties present their evidence and legal arguments to the arbitrator. The arbitrator considers the evidence presented and the legal arguments made by each party and renders a written decision. Each party has a limited period of time to review the arbitrator’s decision and to decide whether to appeal the arbitrator’s decision. If the arbitrator’s decision is acceptable to both parties, the arbitrator’s decision becomes the final decision of the court upon the expiration of the review period. If either party objects to the arbitrator’s decision, then that party may appeal the decision to the court. In most jurisdictions, appeals are by trial de novo, which means that the case is tried by the court as though the arbitration had never occurred.

What is court sponsored mediation?

Court sponsored mediation is a procedure used to help parties to a dispute negotiate an agreed settlement to the dispute. In most jurisdictions, parties to a lawsuit are required to participate in mediation. Although parties to a lawsuit are usually ordered to participate

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