Intro
What is Arbitration?
You might be wondering, “What is arbitration?” You’re likely here because a contract you signed—maybe for a job, a service, or when buying something—includes an arbitration clause. This means that if a disagreement arises, you and the other party agree to resolve it through arbitration instead of going to court.
Arbitration is a way to resolve disputes outside of the traditional court system. Instead of a judge, a neutral third party called an arbitrator hears both sides of the story and makes a decision. This decision is usually binding, meaning both parties must follow it.
Think of it like this:
Imagine you and your neighbor disagree about the property line between your yards. Instead of going to court, you both agree to hire a land surveyor (the arbitrator) to determine the actual boundary. You each present your evidence (maps, surveys, and more) to the surveyor, who then makes a decision about where the property line should be.
Neutral Decision Maker: An arbitrator is impartial and doesn’t favor either side. They are often experts in the subject matter of the dispute.
Privacy: Arbitration proceedings are private, unlike public court trials.
Faster Resolution: Arbitration is often faster than court cases, which can take months or even years to conclude.
Flexibility: You have more control over scheduling and the process itself.
Whether you’re required to use arbitration in your contract or choosing it as an alternative to traditional court trials, there are many advantages.
Note: While arbitration can be less expensive than court, there are still costs involved, such as arbitrator fees and administrative fees. The AAA provides resources to help you understand these costs.
Arbitration can be less intimidating, especially for those without a lawyer.
It’s often faster and more streamlined than court.
Arbitration can keep your dispute private.
You may have some say in choosing the arbitrator and how the case will proceed.