InterDigital Inc (IDCC)

[dmiller]

This is not baseball. It sounds more like a verdict to me.

Splitting the Baby’ – Thomas Crowley states that because of the relaxation of rules of evidence in arbitration, and the power of the arbitrator to ‘do equity’ (make decisions based on fairness), the arbitrator may render an award that, rather than granting complete relief to one side, splits the baby by giving each side part of what they requested. Thus both parties are leave the table feeling that justice was not served.

Definition/example of arbitrate : If your two best friends are fighting over the last piece of gum in the pack, you might arbitrate by telling them to split the last piece.

They do not have the latitude to split the difference.


How does salary arbitration work?
The process is what is known as "Final Offer Arbitration" (though in the world of alternative dispute resolution it is now becoming known simply as "Baseball Arbitration"). In mid-January, each side to the dispute submits a salary figure to a panel of independent arbitrators. After a few hours of hearings, held in early February, the arbitrators pick one figure or the other. The arbitrator cannot "split the baby" and settle on a salary in the middle of the spread between the club's figure and the player's. One side leaves the arbitration a winner and the other a loser, heightening risk and encouraging negotiation and settlement.

This is the critical element of baseball arbitration: it is designed to produce a settlement, not a verdict