Is Arbitration The Right Choice?

Is Arbitration The Right Choice?

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As a type of Alternative Dispute Resolution, arbitration brings in a neutral party, to make a decision about the dispute. Sometime only one arbitrator is needed to decide a dispute, but often an arbitration panel consisting of three or more arbitrators. Arbitration usually turns out being much less expensive than bring cases to court. Business associates often include this as clause in their contracts as a way of resolving any disputes that may arise.

When considering arbitration, it's a good idea to weigh the advantages and disadvantages. Advantages of arbitration are: Arbitrator's usually possess specific expertise that coincides with your case, the process is faster than court appointed decision; it is less expensive than court, also it can be completed in any chosen language.

Some of the disadvantages of arbitration include: both parties are required to pay any fees associated with the case; an arbitrator is not appointed by law in the same fashion as a judge, and is therefore a less official position; and if arbitration is agreed upon, both parties, in turn, agree that the court cannot decide the result of the case and agree to all decisions from the arbitrator. In addition, some are of the opinion that it is not very easy to appeal a decision made by an arbitrator, which could be considered advantage or a disadvantage- depending whether you won or lost.

Although similar, arbitration and mediation are not the same. In arbitration, the arbitrator actually makes a law-binding decision 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.

Arbitration can either be voluntary or mandatory. The process can also be binding or non-binding. Non-binding arbitration is much the same as mediation except that during mediation, a mediator helps to solve a problem between two parties by looking at underlying issues of two parties, and maintain their relationship, while non-binding arbitration deals only with coming to fast decision of the dispute. The arbitrator is not involved in the relationship of the parties involved.

Arbitration is an excellent way to settle a dispute between two parties who cannot agree upon who deserves what. Arbitration is most often used for commercial businesses as it is much faster and cost effective that bringing the case to courts. However, more and more people are choosing arbitration as a means to deciding family law cases, including issues of custody and child support. An impartial third-party arbitrator, who has knowledge of the subject matter involved in the case, will preside over the case and determine what each party is due. Just as there are specific lawyers who specialize in certain subjects, as too, there are arbitrators who are specialized in certain subjects.

It is important to realize, however, that even when an arbitration award is binding, participants still must have an action put into place by the court in order for the award to be confirmed. Therefore, if one party fails to abide by the arbitration decision the final decision is not in the hands of any arbitrator, rather, the case goes right back to court, which is what you were trying to avoid in the first place. Arbitration awards are not directly enforced by the legal system, so in order for the decision to be 100% finalized, a court must approve of the award.

About the Author:
Alternative Dispute Resolution means exactly what it sounds like, an alternative option to the classic method of resolving dispute, namely litigation. People who opt to use the services of an ADR firm are often "out of the box" thinkers, and often a person that becomes an arbitrator or mediator is also an "outside of the box" thinker.



Article Originally Published On: http://www.articlesnatch.com


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