Arbitration is a type of Alternative Dispute Resolution that allows a neutral third-party to make a decision when two parties are in dispute. While bringing a case in to court can be burdening and costly, arbitration is not. Many business contracts include clauses stating that by signing the signer agrees to settle any dispute that may come up through arbitration, and not through trial court.
Before deciding if arbitration is the best choice for you, please consider the pros and cons. The pros include the following: an arbitrator with specific expertise can be assigned to your case based on the needs required to make an educated decision, it is faster than court appointed decision, arbitration is a great choice for businesses where time matters, it is less costly than court, and it can be done in any chosen language.
Disadvantages include: Both parties are required to pay arbitration fees. Arbitrators are not automatically appointed by law. If you choose arbitration, a judge and jury can no longer decide the case. It is difficult to appeal a decision.
Although they are both alternatives to trial court, arbitration and mediation are not the same thing. In arbitration, the arbitrator's verdict is similar to that of a judge much like a judge, while in mediation, the mediator is just a neutral third party who facilitates a decision which the disputing parties themselves decide upon much like a counselor.
This process of ADR can be entered into voluntarily between two parties or it can be mandatory, such as in cases where exists a previous contract agreement between parties to settle all disputes through arbitration. It can also be binding or non-binding. Non-binding arbitration and mediation are similar except during mediation, the mediator helps two parties talk about the problem, and maintain a relationship, while with non-binding arbitration, a decision to be made about which party is awarded what is the only goal. The arbitrator remains separate from the relationship between the two parties.
Please keep in mind that after an arbitrator has handed down his or her decision and awarded it to one party, an arbitrators decision is not as easily enforced as it is by the courts. After a decision has been made, it must be brought to the court to be sanctioned and an action to be filed in order for it to be implemented. Arbitration awards cannot be applied to the winning party until it is approved by a judge. So be aware of that it may take some extra time.
Consider arbitration if you need a dispute resolved directly, using the minimal amount of time and money. It is an effective and capable response to a dispute among two parties looking for resolution quickly and with limited disruption. With knowledgeable arbitrators, you will receive a decision that is best suited to you.
Before deciding if arbitration is the best choice for you, please consider the pros and cons. The pros include the following: an arbitrator with specific expertise can be assigned to your case based on the needs required to make an educated decision, it is faster than court appointed decision, arbitration is a great choice for businesses where time matters, it is less costly than court, and it can be done in any chosen language.
Disadvantages include: Both parties are required to pay arbitration fees. Arbitrators are not automatically appointed by law. If you choose arbitration, a judge and jury can no longer decide the case. It is difficult to appeal a decision.
Although they are both alternatives to trial court, arbitration and mediation are not the same thing. In arbitration, the arbitrator's verdict is similar to that of a judge much like a judge, while in mediation, the mediator is just a neutral third party who facilitates a decision which the disputing parties themselves decide upon much like a counselor.
This process of ADR can be entered into voluntarily between two parties or it can be mandatory, such as in cases where exists a previous contract agreement between parties to settle all disputes through arbitration. It can also be binding or non-binding. Non-binding arbitration and mediation are similar except during mediation, the mediator helps two parties talk about the problem, and maintain a relationship, while with non-binding arbitration, a decision to be made about which party is awarded what is the only goal. The arbitrator remains separate from the relationship between the two parties.
Please keep in mind that after an arbitrator has handed down his or her decision and awarded it to one party, an arbitrators decision is not as easily enforced as it is by the courts. After a decision has been made, it must be brought to the court to be sanctioned and an action to be filed in order for it to be implemented. Arbitration awards cannot be applied to the winning party until it is approved by a judge. So be aware of that it may take some extra time.
Consider arbitration if you need a dispute resolved directly, using the minimal amount of time and money. It is an effective and capable response to a dispute among two parties looking for resolution quickly and with limited disruption. With knowledgeable arbitrators, you will receive a decision that is best suited to you.
About the Author:
Alternative Dispute Resolution means exactly what it sounds like, an alternative to litigation. People who opt to use an ADR agency are often "out of the box" thinkers, and often a person that becomes an emplyment arbitrator or mediator is also an "outside of the box" thinker.
