What does "arbitration" in Texas dispute resolution involve?

Arbitration in Texas dispute resolution is characterized as a process where an independent third party, known as an arbitrator, makes a binding decision to resolve a dispute. This means that the arbitrator evaluates the evidence and arguments presented by both parties and then issues a decision that is typically enforceable by law, similar to a court judgment. The binding nature of arbitration is a significant feature, as it limits the parties' ability to appeal the decision, thereby providing a final resolution to their conflict.

In this context, arbitration differs significantly from other forms of dispute resolution. It is not merely a public court trial, as arbitration usually takes place in a private setting and does not involve the same procedures or formalities as a court trial. It also contrasts with negotiation, where the parties seek to reach a mutual agreement without the imposition of a decision by a third party. Lastly, arbitration is distinct from mediation, which is a facilitated negotiation where a mediator helps the parties reach their own settlement rather than making a binding decision.