Arbitration
A binding or non-binding process where a neutral arbitrator (or panel) hears evidence and renders a decision.
Notice: These services are intended for and work best with small claims matters, but the tools and guidance can be used for any civil matters that may benefit from alternative dispute resolution.
Allegheny County Mandatory Arbitration
In Allegheny County, civil cases with an amount in controversy of $50,000 or less are subject to mandatory arbitration before a panel of three arbitrators.
Allegheny County Local Rule 1301 | 42 Pa.C.S. § 7301 et seq.
Compulsory vs. Voluntary Arbitration
Compulsory (Court-Ordered)
- Required for civil cases ≤$50,000 in Allegheny County
- Panel of 3 attorney-arbitrators
- Award is non-binding — either party may appeal de novo
- Appeal results in a full trial as if arbitration never occurred
- Costs may be assessed against the appealing party if they don't improve their position
Voluntary (Contractual)
- Parties agree in advance (often in contracts)
- Usually a single arbitrator chosen by both sides
- Award is typically binding and final
- Very limited grounds for appeal (fraud, corruption, arbitrator misconduct)
- Governed by PA Uniform Arbitration Act (42 Pa.C.S. § 7301 et seq.)
Pros and Cons
Advantages
Faster than full trial
Less formal procedures
Lower costs (especially for smaller claims)
Privacy — not a public proceeding
Expert decision-makers (attorney-arbitrators)
Disadvantages
Limited discovery (harder to gather evidence)
Binding arbitration has very limited appeal rights
May favor repeat players (businesses that use arbitration frequently)
Arbitrator fees can be significant for voluntary arbitration
Less formal procedures may disadvantage some parties