Arbitration
A private way to settle a dispute, where a neutral person chosen by both sides makes a decision that is usually binding.
Definition
Arbitration is a private dispute resolution process in which one or more arbitrators hear the evidence and arguments and make a binding award. It is usually agreed in advance — often in a contract clause — and produces an outcome that can be enforced by the courts. It is distinct from mediation: the arbitrator decides, the mediator helps the parties decide.
In practice
Check your contract for an arbitration clause before starting court proceedings — if one exists you may be required to use arbitration first.