Arbitration is a method of resolving disputes. Proponents of arbitration often refer to various benefits over litigation, court hearings, and trials as a method to settle issues quickly.
Avoids a hostile situation. Because the parties in arbitration are frequently invited to engage entirely and even to assist build the settlement, they are more likely to work together peacefully rather than exacerbate their anger and antagonism, as is often the case in litigation.
It is usually less expensive than going to court. As more seasoned and skilled attorneys join the cause, arbitration is more expensive. In addition, most parties in arbitration will retain attorneys to assist them through the process, which will increase their expenses. Nonetheless, settling a dispute via arbitration is typically significantly less expensive than going to court since the procedure is faster and often less involved.
Faster than a courtroom battle. According to a recent study by the Federal Mediation and Conciliation Services, the average time from filing to the decision in an arbitrated matter was around 475 days. At the same time, a comparable case in the courts took anything from 18 months to three years.
Flexible. Unlike trials, which must be planned around the requirements and availability of persons involved, arbitration sessions may generally be set around their needs and availability, including weekends and nights.
Evidence and process rules have been simplified. Arbitration processes are not bound by the sometimes perplexing rules of evidence and procedure, making them less stiff and more flexibly adaptable to the individuals’ requirements. Importantly, arbitration foregoes the discovery process, which includes taking and responding to interrogatories, depositions, and demands for the production of documents, and is often seen as a delaying and game-playing approach in litigation. Most arbitration issues are resolved with a simple phone call, such as who will be summoned as witnesses and what papers must be submitted.
Private. Arbitration hearings are usually conducted behind closed doors, and parties may also agree to keep the procedures and ultimate resolution terms confidential. Both of these restrictions may be beneficial if the dispute’s subject matter might create humiliation or divulge private information, such as a company’s customer list.
Understand the conditions of your contracts. Read or reread any agreements you’ve signed with a store, credit card firm, or healthcare provider that may have arbitration clauses. If the deal requires you to submit to binding arbitration, which you do not want, look for another supplier.
Let your thoughts be known. If you find an arbitration provision offensive, make your thoughts apparent to corporate management. If the corporation wants your business hard enough, it may be feasible to bargain the conditions away. Even huge corporations have altered their forced arbitration rules to produce significant consumer dissatisfaction.
Since the pandemic started, Mediation centres have started continuing with virtual hearings, which has also been cost-efficient for everyone as they also save money on travelling, property issues etc. …