What is binding arbitration? Binding arbitration involves the submission of a dispute to a neutral party who hears the case and makes a decision.Arbitration is an out-of-court method for resolving a dispute between a worker and an employer. Contractual arbitration is a means of bypassing the judicial system and is voluntary in the sense that the parties have entered into an agreement to resolve. The Conflict Resolution Center of Montgomery County offers free or low-cost mediation and other dispute resolution services. If you have a fee dispute with your lawyer, consider arbitration as an option. Arbitration is a formal method of dispute resolution involving a third party neutral who makes a binding decision. There are two types of ADR services offered, mediation and settlement conferences. ADR services in the District Court are free to the participants. Use the name and address of the business as you have it in your files when completing the paperwork.