By Pigott Law Group
Posted on 8-22-2023
Our Pigott Law Group is well versed in many areas of the law and one of those areas is arbitration. If you are not super familiar with arbitration, it can sound like a scary term, but it doesn’t have to be. Knowledge is power and that’s why today we are going to answer some of your most commonly asked questions about arbitration.
Arbitration is a form of alternative dispute resolution where parties involved in a dispute agree to have their case heard by an impartial third party known as an arbitrator. The arbitrator reviews evidence and arguments from both sides and makes a binding or non-binding decision to resolve the dispute.
In litigation, disputes are resolved through the court system with a judge or jury making the final decision. Arbitration is typically less formal, quicker, and more private than litigation. Parties can agree to the rules and procedures, and arbitration decisions are often final and have limited opportunities for appeal.
Depending on the type of arbitration, the decision can be either binding or non-binding. Binding arbitration means the decision is final and legally enforceable, similar to a court judgment. Non-binding arbitration offers recommendations that the parties can choose to accept or reject.
Arbitration is used to resolve a wide range of disputes, including commercial, employment, construction, consumer, and family disputes. It is commonly used in contracts, such as employment agreements, construction contracts, and commercial agreements.
Arbitrators are typically selected by the parties involved in the dispute or by a designated arbitration organization. They are chosen for their expertise in the subject matter of the dispute and their neutrality.
Yes, parties can agree to mandatory arbitration by including an arbitration clause in a contract. This clause requires any disputes arising from the contract to be resolved through arbitration rather than litigation.
Yes, parties can voluntarily choose arbitration as a method of dispute resolution even if there is no contractual obligation to do so. Both parties must agree to participate in arbitration.
The timeline for arbitration varies based on the complexity of the case, the availability of the arbitrator, and the agreed-upon rules. Generally, arbitration can be faster than traditional litigation, but it still depends on the specific circumstances.
Yes, arbitration is generally more private and confidential compared to court proceedings. The details of the dispute, evidence presented, and the arbitration decision are not typically made public.
The opportunities for appealing an arbitration decision are usually limited. In binding arbitration, the decision is final, and the grounds for appeal are generally restricted to instances of misconduct, fraud, or a lack of due process.
The cost of arbitration varies depending on the arbitration organization, the complexity of the case, and the location. Parties are typically responsible for paying arbitrator fees, administrative fees, and legal representation costs.
See? Arbitration isn’t so scary. In fact, it can be a very agreeable way to resolve disputes and if you think you could benefit from it, contact our attorneys.
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