Are decisions by mediators or arbitrators binding on the parties?
The results of arbitration are usually binding only because the parties usually sign a contract before beginning arbitration in which they agree to be bound by the decision. However, the parties can forego such an agreement, in which case the arbitration would be nonbinding. Mediation, on the other hand, is typically nonbinding. The result is more like a suggestion for a reasonable compromise, but if the parties are not satisfied they may continue to litigate in court.