Edna Sussman and Erin Gleason have published a useful article titled “Everyone Can Be a Winner in Baseball Arbitration: History and Practical Guidance,” New York Dispute Resolution Lawyer Vol. 12, No.1 Spring 2019. In their publication, the authors provide an overview of Baseball Arbitration and examine the psychology behind the process before suggesting tips and guidance for those who participate in this type of arbitration proceeding. The article begins by stating:
While it may be that in baseball there has to be a winner and a loser, that is not necessarily the case in arbitration. Baseball Arbitration, also known as Final Offer Arbitration (FOA), is a process that is rarely discussed in commercial and international practice, though it offers efficiencies that would be “winners” for both parties. In FOA, parties have the opportunity to manage risk and drive settlement—features that are advantageous for both sides. It is time to focus on the application of this useful tool, which can help parties avoid the extremes of winning or losing in arbitration and perhaps enhance their chances of achieving the win-win of an agreed-upon settlement. Moreover, the FOA process generally shortens the time to the issuance of the award and opens the door for discussions about other mechanisms to streamline the proceeding and save time and costs. The following discussion provides a brief history of FOA and offers practical guidance for its application by parties and arbitrators.
You may read the article on Ms. Sussman’s website.