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What Is Arbitration?
Arbitration can be defined as a less formal method of resolving legal disputes than a traditional lawsuit. In arbitration, the parties gather together to meet with a person who is appointed as a neutral mediator. The parties go through a series of questions and answers and discussion among themselves. Their goal is to reach some sort of agreement that will help them move resolve their conflict so they can move forward.
Most arbitrations occur because there was a clause in a contract that the parties both agreed upon when signing that if a dispute were to arise in the transaction, they would resolve the dispute outside of court through arbitration. This usually saves time and money on attorney fees for both parties.
What Are the Benefits of Undergoing Arbitration?
One of the many benefits of arbitration is that parties can resolve their disputes outside of court. Some benefits of arbitration include:
- Can be less time consuming than a regular trial
- May also cost less overall in terms of court fees and costs
- Encourages a less confrontational approach to problem solving
- Can create alternative ways to solve problems
Thus, arbitration can be a great tool because it encourages parties to solve their problems in a non-confrontational and cooperative way. For instance, the parties might rework a contract in order to accommodate changes which were causing the dispute. In a normal trial, the parties might have been led to other remedies such as an injunction preventing certain conduct from one party.
Is Arbitration the Same in All States?
No, arbitration of disputes may vary from place to place. This is because every state has different laws, and therefore, different procedures for dealing with conflicts. This is especially true of areas such as family law and business law, which are very different depending on the geographic area.
What Is the Difference Between Mandatory Arbitration and Voluntary Arbitration?
The difference between mandatory arbitration and voluntary arbitration is that an arbitration clause may make arbitration mandatory. A voluntary arbitration occurs when both sides come to an agreement that if a dispute were to arise, they would submit the dispute to arbitration.
There is also a binding arbitration and non-binding arbitration. In a non-binding arbitration, either party has the choice to reject the arbitration award or decision and go to trial instead. In a binding arbitration, the arbitrators decision or reward is final and neither party can have the decision reviewed or overturned by the court unless there was an exception such as fraud or misuse of power that was involved in making the decision.
Do I Need a Lawyer for Help with Arbitration?
Undergoing arbitration generally requires the help of a contracts lawyer. During arbitration, much negotiation and discussion occurs, as well as the analysis of various laws and legal concepts. It’s in your best interests to hire a lawyer if you nee help with arbitration. Your attorney can provide you with legal advice to help guide you throughout the process.
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Last Modified: 01-09-2017 12:21 PM PST
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