A Look at the Two Sides of an Arbitration Proceeding

A Look at the Two Sides of an Arbitration Proceeding

When it comes to arbitration, there are both positives and negatives. Determining whether it has a good result depends on the goals of the participants. For some, the touted benefits of arbitration may actually be a downside. Likewise, some negatives may not actually be that bad at all. Learn about both the pros and cons of the process to find out if it is right for you.

Pluses of Arbitration

In arbitration, simplicity is key. By choosing this path, you can avoid a lot of the paperwork and procedures that go with litigation. Thus, if you aren't prepared to spend the foreseeable future in court, opt for arbitration.

Most people favor arbitration because it is faster than litigation. This is partly due to the scheduling used for these proceedings. Generally, arbitration will have a clear schedule of events. In contrast, court hearings can go any which way depending on the case and calendar. You should use arbitration if you are looking for a quick resolution.

Everyone involved in a lawsuit cares about the costs. No one wants to get saddled with a huge amount of debt while seeking justice. Arbitration is attractive because it costs way less than a traditional court case. Yet, in some situations, arbitration can be just as expensive as litigating in court.

Another one of the benefits is that arbitration creates a final result. Unlike with a court verdict, an arbitration ruling is very hard to appeal. In this sense, arbitration is a sure way to bring a sense of resolution to a dispute.

Some of the Negative Issues

Unfortunately, there can be some geographical limitations to an arbitration proceeding. Some contracts will dictate where an arbitration is to take place. You may have to travel to another city or state. This will add to the time commitment and costs involved with arbitrating a matter. Before entering arbitration, be sure to know where it is likely to take place.

Related to the location aspect of the proceeding is the cost. As discussed above, arbitration is usually more cost-efficient than a full court case. Yet, sometimes the costs of arbitration can add up. Whether it becomes a big expense down the road depends on how the proceeding is set up. For example, a non-binding arbitration may give one of the parties the chance to reopen the case at a later date. This could mean you might have to foot the bill yet another time.

Although the legal system intends arbitration to be fair, it isn't always the case. Some people would rather resolve a situation before it even gets to arbitration. Thus, it can seem unfair to have to participate in arbitration. Furthermore, arbitration hearings take place without a jury. This means that one person, the arbitrator, will handle the decision making process. This can seem unfair to many people. If you want to have a case heard before a jury of your peers, you will need to litigate it in court.

More on Pros and Cons

There are many upsides and downsides to arbitration proceedings. Aside from the considerations above, there can be a number of other factors that come into play. Be sure to discuss your case with an experienced attorney before it's too late.

For help with mediation or arbitration in Utah, contact TR Spencer and Associates.

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