Mandatory arbitration

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Mandatory arbitration is a contract policy that prevents a conflict from receiving judicial attention. In a mandatory arbitration, liability for damages must be determined as a result of an arbitration process before a civil lawsuit can be filed in the court system. In arbitration, neutral arbitrators (often knowledgeable practicing attorneys) are selected and then evidence is presented. The arbitrators then determine the amount of the arbitration award, if any. If the arbitration award is agreed to, that is the end of the matter (and often the arbitration award is thereafter made a court judgment for further enforcement purposes). If there is one of the litigants refuses to accept the arbitration award, a lawsuit may then be filed to have a "trial de novo" (new trial) in a court of law, with liability to be determined by a judge or jury.