The Overview of Arbitration

portfolio-05-mediationArbitration is a process of dispute resolution in which the parties grant authority to an impartial arbitrator who hears testimony and arguments, receives evidence and issues a legally-binding decision to resolve the conflict.

Advantages of arbitration over judicial proceedings:

  • You can choose your arbitrator, not your judge
  • Arbitration is often faster than litigation in court
  • Arbitration can be less expensive and more flexible for businesses
  • Proceedings and outcomes are private and confidential
  • Arbitration has more understandable vocabulary

It is best to use arbitration when:

Ordered by the court
Stipulated by contract
Complex issues
All parties not willing to make good faith effort
Conflict requires external enforcement
Parties unable to reach agreement on resolution
Parties want a neutral outsider to decide issues
Parties want a neutral outsider to decide issues