What is Neutral Evaluation

Neutral evaluation is a kind of hybrid process between a non-binding arbitration and mediation which provides an alternative dispute resolution process.  The idea is that parties to a dispute voluntarily make presentations to a neutral third party and present their case to the neutral as they would do in arbitration.  At the end of the presentation, the neutral will render an advisory decision as if the neutral were an arbitrator. 
The evaluator then gives a non-binding, confidential opinion about the strengths and weaknesses of each party's case and the likely range of damages. The parties then have the opportunity to discuss settlement or use the evaluation for further negotiations. Parties often use the evaluator's opinion as a basis for trying to negotiate a resolution of the dispute on their own or with the help of a mediator.  Neutral evaluation is most useful in cases with technical issues that require special expertise to resolve and is different than Arbitration because it happens sooner in the trial process, before costly discovery (American Arbitration Association, 2007).