confidential arbitration
Definition
Confidential arbitration is a private dispute resolution process where both parties agree to resolve their conflict outside of court, and everything discussed, submitted, or decided stays completely secret. Unlike a court case, which creates public records anyone can look up, confidential arbitration keeps the entire proceeding, the evidence, and the final outcome hidden from the public.
Example
If a customer sues your business and you both agreed to confidential arbitration in your contract, the hearings would happen privately and no one outside the process could learn how the dispute was resolved or how much money changed hands.
Watch Out
Confidentiality clauses in arbitration agreements can sometimes prevent you from warning other businesses about a bad vendor or contractor, so read those terms carefully before signing.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.