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What exactly is “baseball arbitration,” and how is the Pilot Program a variation of it?

What exactly is “baseball arbitration,” and how is the Pilot Program a variation of it?

The term “baseball arbitration” refers to the format for arbitrating players’ salaries in Major League Baseball in which the player and team each submit a single number representing the player’s proposed salary for the upcoming season to a panel of three arbitrators. At the hearing, the two sides submit a signed and executed agreement with a blank space left for the salary figure. The player and team each also have the opportunity to present its case and a rebuttal, after which the arbitrators choose one of the two numbers as the player’s salary. The Pilot Program simply applies the baseball arbitration format to non-auto personal injury cases under Rule 4:21A. The arbitrator will receive final offers from the parties and then make an award limited to the offer of the party that is closest to the amount that the arbitrator decides is appropriate.