How Can a Personal Injury Claim Be Resolved Through Arbitration?

Posted on behalf of James Lynch on September 29, 2021  in Car Accident News. Updated on July 12, 2023

Arbitration is a legal process that is often used to resolve a dispute between two parties, such as a personal injury case. Since there is generally no need for a court filing, this process is becoming more popular for people and companies who wish to keep the resolution of disputes more private, while still having an objective third party hear their case.

If you are trying to resolve a dispute between you and someone who injured you, but do not want to go through the hassle of filing a lawsuit, arbitration may be an option.

Our New Jersey personal injury attorneys have decades of experience helping our clients resolve their injury claims in a variety of ways and are prepared to help you through the process of arbitration if necessary.

We offer a free consultation to see what legal options may be available to you and charge you nothing while we work on your case.


Although arbitration is usually voluntary, there are some instances when it may be required due to the existence of some preexisting contract between the two disputing parties.

One common example of when arbitration may be required is if you are in a dispute with your own insurance company. Most policies, especially Personal Injury Protection (PIP) policies, have a clause included in them in which the insured agrees that any disputes arising between him or her and the insurance company shall be resolved through binding arbitration.

You may also be required to resolve a dispute with a rideshare company via arbitration, as companies like Lyft and Uber have updated their consumer use agreements to include a clause that states that users agree to binding arbitration instead of filing suit if a dispute arises.


Just as there are both voluntary and mandatory forms of arbitration, there is binding and non-binding arbitration. When arbitration is binding, it means that whatever the results are after the process, you must accept them. When the results are non-binding, you may file a lawsuit to try to secure a more favorable outcome.

Both parties must agree to the type of arbitration before the process begins. However, your signature on a preexisting contract stating you agree to binding arbitration may be legally enforced.

It is important to remember that filing a lawsuit after going through the process of non-binding arbitration may not always result in a more favorable outcome. The jury might not award the amount of compensation you are seeking.


In some ways, the process of arbitration is like the process of taking a claim to court. One of the main differences is that both parties must agree on who the arbitrator will be, unlike a jury trial in which jurors are chosen from a randomly selected group of people.

After that, there are opening statements and presentations of facts from each side, followed by closing arguments. In fact, there is also a discovery process in which each side must disclose certain information to the other when requested. Once each party has presented its case, the arbitrator may take several days to reach a decision.

If the process was non-binding, you may appeal your case to the courts.


Arbitration has pros and cons, just like any other form of Alternative Dispute Resolutions (ADR). One of the biggest pros of choosing arbitration used to be that it was more cost-effective. However, as the process has become more popular, arbitrators are increasing the asking price for their services. It is important to weigh the costs of filing a lawsuit or hiring an arbitrator.

Another pro of choosing arbitration over court is the privacy of the process since you are not subjected to testifying in open court. But remember that settling a claim may also grant you this same privacy.

The rules for admitted evidence in arbitration are also more relaxed than they are in court, which could be helpful or hurtful, depending on the facts of your claim. Unfortunately, you are not given the opportunity to cross-examine any witnesses.


If you are trying to resolve an injury claim, but do not know what process would best suit your interests, give our attorneys a call today to discuss the facts of your claim. We are prepared to review your legal options to see how we may be able to help maximize your compensation.

Our attorneys have decades of experience helping injury victims get the compensation they need and have successfully recovered millions on their behalf.*

The consultation is free and there are no fees unless we win.

Call us today at (800) 518-0508

* Results may vary depending on your particular facts and legal circumstances.

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