A proceeding where at least one neutral person unrelated to either side helps the parties resolve the issues and problems in the lawsuit. Arbitration is often ordered by the judge so the parties might settle their disagreements without having to go to trial. Usually the decision reached at an arbitration is binding on both parties. ‘Mediation’ is often used the same way. E.g. Bob and Sue settled their disagreement through arbitration, so they did not have to go to a trial.