When it comes to alternative dispute resolution (ADR), one of the primary questions parties might have is whether or not the process is legally binding. In other words, if one or both sides are unsatisfied with the result of ADR, can they go on to pursue litigation? The answer is, it depends.
Non-binding arbitration decisions, for example, can be challenged in court through a trial de novo. Most contractual arbitration, on the other hand, is generally binding and not up for appeal, except through the narrow grounds in Federal Arbitration Act section 10.
In the majority of cases, a contractual agreement ahead of an ADR attempt will specify whether or not litigation can be pursued following a ruling. The purpose of ADR is often to bypass the time consuming challenges presented by litigation, but parties should never feel forced into relinquishing their rights to litigate.