Arbitration, a form of alternative dispute resolution (ADR), is a legal technique for the resolution of disputes outside the courts, where the parties to a dispute refer it to an arbitrator by whose decision (the "award") they agree to be bound.

Like a judge, the arbitrator reviews the evidence in the case and imposes a decision that is legally binding for both sides and enforceable.

Parties often seek to resolve their disputes through arbitration because of a number of perceived potential advantages over judicial proceedings:

arbitration can be faster than a court application.
arbitration is not always cheaper, more flexible and actually can be more expensive than going to court.
arbitral proceedings and an arbitral award are generally non-public, and can be made confidential.
in arbitral proceedings the language of arbitration may be chosen, whereas in judicial proceedings the official language of the country of the competent court will be automatically applied. If all the parties, and witnesses are Chinese, for example, they can hire a Cantonese or Mandarin speaking arbitrator to hear the case.

Possible disadvantages are:
Arbitration may be subject to cost and complexity pressures from the lawyer representing the condo corporation.
Adds an additional layer of legal cost that can be prohibitive.
If the arbitrator depends on condo corporations, and their lawyers and property management, for repeat business so there may be an inherent incentive to rule against the owner.
There are very limited avenues for appeal, which means that an erroneous decision cannot be easily overturned.
Discovery may be more limited in arbitration or entirely nonexistent.
Unlike court judgments, arbitration awards themselves are not directly enforceable. A party seeking to enforce an arbitration award must resort to judicial remedies, called an action to "confirm" an award.
Although grounds for attacking an arbitration award in court are limited, efforts to confirm the award can be fiercely fought, thus necessitating huge legal expenses that negate the perceived economic incentive to arbitrate the dispute in the first place.

Arbitration is like going to court except that it is far less formal and an owner can present his or her own case. Some owners hire a lawyer to prepare and present their case while the ones with more confidence, or on a budget, may pay a lawyer for a few hours of legal advice. The hearing is usually held in a local hotel meeting room.

The lawyer representing the board will present the board’s case and the owner will present his or her arguments. The arbitrator will mail the parties a written judgment and will decide costs.

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