Legal Definitions - inarbitrable

The term inarbitrable describes a dispute or issue that, by law or established legal principle, cannot be resolved through arbitration. Arbitration is a private process where a neutral third party (an arbitrator) hears evidence and makes a binding decision, often as an alternative to court litigation. When something is inarbitrable, it means it must be decided by a court or another specific, legally mandated process.

Here are some examples to illustrate this concept:

• Criminal Cases: Imagine a situation where an individual is accused of committing a serious felony, such as armed robbery. The question of their guilt or innocence, and the appropriate punishment if found guilty, is inarbitrable. This type of dispute cannot be resolved by a private arbitrator, even if both the accused and the prosecution were to agree. Instead, it must be adjudicated through the formal criminal justice system, involving a public prosecutor, a judge, and potentially a jury, to ensure due process and uphold public safety.

  This example illustrates inarbitrable because criminal matters are considered public law issues that are exclusively reserved for state or federal courts, not private arbitration, due to their profound impact on society and individual liberties.

• Certain Family Law Matters: Consider a dispute over child custody and visitation rights between divorcing parents. While some financial aspects of a divorce might be amenable to arbitration, the ultimate decision regarding the best interests of the child, including custody arrangements, is often considered inarbitrable in many jurisdictions. Courts typically retain exclusive jurisdiction over these sensitive matters to ensure judicial oversight and protection of children's welfare.

  This demonstrates inarbitrable because, despite parents potentially agreeing to arbitration, the law often mandates that a court must make the final, binding decision on child custody to safeguard public policy interests related to children's well-being.

• Bankruptcy Proceedings: When a company files for bankruptcy, the complex process of liquidating assets, prioritizing creditors, and discharging debts is inarbitrable. A company cannot simply agree with its creditors to have a private arbitrator decide how its assets will be distributed and which debts will be discharged. These proceedings are highly regulated by federal law and must be handled by specialized bankruptcy courts.

  This example shows inarbitrable because bankruptcy involves specific statutory frameworks and public policy considerations that require the formal structure and authority of a court to ensure fairness, transparency, and adherence to legal requirements for all parties involved.