What process is described when parties cannot agree on the recovery of damages and arbitration is pursued?

The process described when parties cannot agree on the recovery of damages and arbitration is pursued is arbitration. Arbitration is a form of alternative dispute resolution where the conflicting parties submit their dispute to a neutral third party, known as an arbitrator. The arbitrator reviews evidence and listens to both sides before making a binding decision. This method is often chosen for its efficiency and the potential to reach a resolution without the lengthy and formal nature of court litigation.

Unlike mediation, which involves a mediator helping the parties reach a mutual agreement without making a binding decision, arbitration results in a final determination by the arbitrator. While litigation refers to taking legal action in court, arbitration is a more private and streamlined approach to resolving disputes. Dispute resolution encompasses various methods of resolving conflicts, including arbitration, but does not specifically identify the binding aspect of arbitration that distinguishes it from other forms like mediation or litigation.