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This isn't the scenario here though---there are no cases against specific people, only disputes *between* multiple people. We require that earlier steps of the dispute-resolution process be followed first, such as mediation. If these are unsuccessful, the matter goes to arbitration. The arbitration is thus arbitration of the dispute between two people, and is charged with resolving it in some way.
The proper analogy, as the name implies, is to arbitration hearings, not to court cases. It is standard practice in arbitration that sanctions may be levied against either or both of the parties to a hearing.
I think you are correct about the intent when the arbitration process was set up. But, de facto, because admins also err and abuse and the arbitration committee is the only check on their power, it has had to act on cases that are more violations than disputes.
-- Silverback