Divorce Mediation Blog

Baseball Arbitration - Where Life Imitates Sport: Part 1

Friday, September 07, 2012

A recent article in Massachusetts Lawyers Weekly advanced the benefits of “baseball arbitration” in civil matters generally. It can apply in family law and probate law matters quite effectively. First, what is it?

Baseball arbitration, which literally arose from an MLB labor agreement, exists to resolve disputes about player salaries, but in a way that is meant to encourage settlement before the arbitrator’s hearing. By all reports is extraordinarily effective at doing just that.

Here is how baseball arbitration works. The sides each submit an offer, the player the higher salary, and management the lower. The arbitrator, after hearing, has limited authority: he must pick one. He may not award any other salary.

The effect of this high-risk methodology is to push the two sides as close together before the hearing starts as possible. In the player’s case, he fears that if he asks a ridiculously high salary and the team’s offer is within the mainstream of results for similar players, the arbitrator will find for the team; and the reverse is true for management. The result is smaller gaps, and except on rare occasions, settlement.

We will talk about how this may apply to family and probate law disputes in our next entry.

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