A trial de novo after arbitration is a completely new trial in court that wipes out the arbitrator’s decision as if the proceeding never happened. In federal district court, you have 30 days from the date the award is filed with the clerk to demand one in writing. The right only exists when the arbitration was non-binding, which is typical of court-annexed programs; binding arbitration closes that door.
When You Can Demand a New Trial
Everything turns on whether the arbitration was binding or non-binding. Non-binding arbitration produces an advisory decision that either side can reject. Binding arbitration, agreed to in advance by contract or stipulation, is final.
The usual setting for a trial de novo is a court-annexed arbitration program. Federal district courts are required to offer at least one form of alternative dispute resolution, and when a court uses arbitration, it generally needs the parties’ consent.1Office of the Law Revision Counsel. 28 U.S. Code 652 – Jurisdiction In federal court, cases can be referred to arbitration only when the damages sought are $150,000 or less.2Office of the Law Revision Counsel. 28 U.S. Code 654 – Referral of Actions to Arbitration State programs set their own monetary thresholds, which vary widely. Check the local rules of the court that referred your case; those rules will spell out whether a trial de novo is available and on what terms.
The 30-Day Deadline
In federal district courts, the written demand must be filed within 30 days of the date the arbitration award is entered on the docket.3GovInfo. 28 U.S. Code 657 – Arbitration Award and Judgment State courts set their own deadlines, commonly between 20 and 60 days. Courts enforce these windows strictly.
Miss it and the award automatically becomes the judgment of the court. In federal court, that judgment carries the same force as any other but cannot be appealed.3GovInfo. 28 U.S. Code 657 – Arbitration Award and Judgment Most state programs reach the same result. If the arbitration went badly, do not sit on the paperwork.
How to File the Demand
The demand is a written filing submitted to the clerk of the court that referred the case to arbitration. You will need the case name, case number, and the correct court. Most clerks have a specific form for this purpose, available at the office or on the court’s website.
Expect a filing fee, typically non-refundable, and confirm the amount with the clerk before the deadline closes in. At the same time you file, serve a copy on the opposing party or their attorney through an accepted method, usually mail completed by someone over 18 who is not a party to the case. That person signs a proof of service form, which you then file with the court. A filing without valid proof of service may be rejected.
What the New Trial Looks Like
Once the demand is properly filed, the case returns to the active docket and proceeds as if arbitration never occurred.3GovInfo. 28 U.S. Code 657 – Arbitration Award and Judgment The award is legally voided. Evidence and arguments are presented fresh to a judge or jury under standard court rules.
Federal law bars the court from admitting any evidence that arbitration occurred, what the award was, or how the arbitration was conducted. The only narrow exceptions are when the evidence would independently be admissible under the Federal Rules of Evidence or when the parties agree otherwise. To hold that line, the district court keeps the arbitration award sealed so that any judge assigned to the case cannot see it until the trial concludes or the case is otherwise resolved.3GovInfo. 28 U.S. Code 657 – Arbitration Award and Judgment Neither side can tell the jury that the arbitrator ruled in their favor, and calling the arbitrator as a witness is effectively off the table. The point is a genuinely fresh hearing.
The Cost Risk of Asking for One
Demanding a trial de novo is not free of consequence. Many state court-annexed programs impose cost-shifting penalties when the party who rejected the award fails to improve on it at trial. If your result is worse than or equal to the arbitration award, you may be ordered to pay the other side’s attorney fees and court costs, and some programs also require reimbursement of the arbitrator’s compensation.
The rules vary. Federal courts leave the details to local rules adopted by each district, and not every state program imposes penalties. Weigh the strength of your case against the possibility that a loss at trial could cost significantly more than living with the award.
If the Arbitration Was Binding
No trial de novo is available after binding arbitration, whether you landed there through a contract clause or a voluntary agreement to binding terms. The arbitrator’s decision is final and enforceable like any judgment. A court can vacate a binding award only on narrow grounds under the Federal Arbitration Act, including corruption or fraud in obtaining the award, evident partiality by the arbitrator, misconduct such as refusing to hear material evidence, and the arbitrator exceeding the scope of what the parties submitted.4Office of the Law Revision Counsel. 9 U.S. Code 10 – Same; Vacation; Grounds; Rehearing Disagreeing with the reasoning or the factual findings is not enough. Knowing whether your arbitration is binding before the hearing starts matters far more than any move afterward.