Actually the difference is more than a technicality. Arbitration is a privately moderated dispute resolution which the parties agree to be bound by. The parties choose the arbitrator(s) who is supposed to be both knowledgeable and impartial. The parties pay the arbitration costs. So there is no access to, or use of, the civil courts (paid for with public tax revenues). The theory is reduction of court congestion, slightly eased rules of evidence, and generally a higher degree of privacy as the parties can agree to keep the proceedings and the outcome confidential. Mandatory arbitration clauses are very standard in personal service contracts and brokerage firm agreements.