What is court-ordered arbitration? Arbitration is an informal trial held before a neutral court official called an arbitrator.An arbitration hearing is an informal legal proceeding held before a neutral court official called an arbitrator. Self-representation means representing yourself in a legal matter, such as an arbitration case. Arbitration is a binding or non-binding process where an arbitrator, rather than a judge or jury, applies the law to the facts of the case and issues an award. Here's a closer look at how the process works, and tips for preparing your case for a courtordered arbitration (specifically in North Carolina).