Guide to Rabbinic Arbitration
When two sides agree to settle a dispute according to Torah law, they may opt to have the matter heard by a single dayan (judge) instead of a full bet din. This option is even less costly and quicker than formal bet din proceedings, yet it is entirely compliant with halacha.
Initiating Arbitration
Unlike a formal bet din case, there is no official hazmanah (summons). Rather both sides must agree to be bound by the decision of the arbitrating dayan.
Shtar Berurim (Binding Arbitration Agreement)
Similar to bet din, both the toveah (plaintiff) and the nitvah (defendant) must sign a shtar berurim (binding arbitration agreement), which certifies that both parties agree to be bound by the decision of the bet din. This legally binding document is applicable in civil court, rendering the ruling of the arbitrating dayan no less enforceable than that of a secular court.
Proceedings
Similar to bet din, when the arbitrating dayan convenes to hear the case, both the toveah and the nitvah must be present before any arguments or evidence can be presented. The toveah presents his case first, and then the nitvah is given the opportunity to defend himself. Each side is afforded the opportunity to present whatever testimony, evidence, arguments and witnesses they wish to support their claim. Throughout the process, the dayan may ask one or both sides for clarification or additional details.
Judgment
When both sides have rested their cases, the arbitrating dayan may issue a judgment immediately or reserve his decision for a later date. When a decision is reached, written notice is provided to both sides.