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Why Arbitration?

by | Apr 14, 2024 | Firm News |

Arbitration of business litigation matters is something to consider and here are some thoughts.

  1. You may have no choice. If there is a binding arbitration provision in the parties’ contract, then the decision has already been made for you.
  2. If there is not a pre-existing arbitration agreement, the parties can still enter into one at any point during the litigation process.
  3. Arbitration is much, much faster than court. The final decision is likely to occur in a matter of months, not years.
  4. Arbitration is final and unappealable. Ultimately, this saves both time and money. The winner wins; the loser loses – and everyone gets back to business.
  5. There is no jury. If the value of your case, or the exposure needed to move the other side’s needle depends on a scary jury, then you must avoid arbitration.
  6. Arbitration is confidential. What happens in Vegas….. You get the point. The public will not be able to find the details or outcome of a case on a Pacer or Google search.
  7. The litigants have more say in the scheduling and procedures of an arbitration matter than they do in a court proceeding. This can often ease the burdens and unpredictability of litigating before a difficult or non-responsive judge.
  8. Arbitration can be expensive too. Depending on where and how you arbitrate, you may pay very substantial fees to the arbitration provider and/or to the arbitrators themselves. On the other hand, judges are basically free and the court systems’ filing fees are a fraction of  those assessed by AAA and other private services.
  9. There is no one correct answer. Each case should be evaluated to determine whether arbitration is a good place to have your case decided.

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