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Arbitration

Arbitration is a private, out-of-court dispute resolution process—usually between parties to a contract—in which the dispute is resolved by one or more arbitrators rather than by judges and juries in the court system.

In Indiana, arbitration is governed by both state law and federal law, depending on the nature of the dispute. The Indiana Uniform Arbitration Act (IUAA) provides the framework for arbitration proceedings within the state. This Act outlines the procedures for initiating arbitration, selecting arbitrators, conducting hearings, and confirming, vacating, or modifying arbitration awards. Arbitration is generally favored by Indiana courts as a means of resolving disputes efficiently and is binding unless the parties have agreed otherwise. Federal law, specifically the Federal Arbitration Act (FAA), also applies to arbitration agreements and proceedings that involve interstate commerce or fall under federal jurisdiction. The FAA emphasizes the enforceability of arbitration agreements and supports the resolution of disputes through arbitration rather than litigation. In Indiana, as in other states, parties to a contract may agree to arbitrate disputes rather than going to court, and such agreements are typically upheld by the courts, provided they are entered into voluntarily and are not unconscionable or in violation of public policy.

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