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Cases Subject to Arbitration. The statutory scheme for mandatory arbitration is found in ORS 36.400 to 36.425. It applies to civil cases where the only relief claimed is for the recovery of money or damages and the amount claimed is less than $50,000.00, exclusive of attorney fees, costs and disbursements.
Arbitration is a procedure much like a trial, but less formal. Instead of a decision being made by a judge or jury, an arbitrator hears the evidence and makes a decision.
Mandatory binding arbitration is a private proceeding to settle disagreements between two parties. Parties to a contract agree to have their case reviewed by a third party?called an arbitrator?and to be bound by the arbitrator's decision.
As a result, by one estimate, workers subject to mandatory arbitration bring 98% fewer claims under the Fair Labor Standards Act compared to those not subject to mandatory arbitration.
A civil case is eligible for a mandatory arbitration if the initial amount sought for damages is less than $50,000.