Arbitration is a type of dispute resolution that individuals can take advantage of if they want to resolve their legal issue or dispute outside of a courtroom. Arbitration is a form of alternative dispute resolution (ADR). ADR also includes negotiation, mediation, and settlement conferences.
Arbitration can be ordered by a court, chosen by the parties, or required under a contract parties signed. Additionally, there are organizations available that can assist, including the American Arbitration Association (AAA).
The process of arbitration is similar to a trial, but with fewer rules and restrictions. Arbitrators, or neutral third parties, will listen to the evidence and arguments from both sides and make a decision. An arbitrator does not need to be a lawyer or a judge.
An arbitration is less formal than a courtroom trial but more formal than other forms of ADR, such as mediation. An arbitrator usually makes a binding decision. Mediation, in contrast, uses a neutral third party to help them reach their own agreement.
An arbitration can be a binding arbitration or a non-binding arbitration. The arbitrator’s decision in a binding arbitration is legally enforceable. An arbitrator in a non-binding arbitration typically provides a recommendation that is not legally enforceable.
The arbitration process can allow parties to obtain expert opinions and advice about the case without being bound to the outcome of the arbitration. If a party to an arbitration does not like the outcome of the process, they will be able to take their issue to court.
When an arbitrator makes a decision, it is called an arbitration award. The evidence and arguments presented during the arbitration process, as well as the arbitrator’s decision, are not made part of the public record.
The privacy provided by arbitration is one of the common reasons that individuals choose arbitration. This is different from a trial, as these are typically open to the public and become part of the public record.
What Is an Arbitration Agreement?
Arbitration agreements are clauses in contracts that require the parties who sign it to use arbitration to resolve any disputes they have based on the contract. These provisions may also be called arbitration clauses.
An arbitration agreement is usually contained in the contract itself. Most provide that the only way the parties are allowed to resolve their dispute is using arbitration.
It is common for the parties to wonder if a court will enforce an arbitration clause in a contract. If a case involves a maritime contract or if it crosses state lines, the Federal Arbitration Act (FAA) usually overrules any state laws limiting the enforceability of a mandatory arbitration agreement.
If the FAA does not apply to a contract, the laws of the state where the arbitration is conducted control whether or not the court will enforce a mandatory arbitration clause. Federal and state courts typically enforce mandatory arbitration agreements when the circumstances of the case indicate the agreement is enforceable.
The laws that cover arbitration agreement enforcement can be different in each state. In the State of Indiana, a mandatory arbitration agreement is usually enforceable, as long as it is in writing and is valid under contract laws.
Indiana lawyers can explain all of the details of an individual’s contract and whether the arbitration clause it contains will likely be enforced in state or federal court.
When Will a Court Enforce an Arbitration Decision in Indiana?
It is important to have an idea of whether or not an Indiana court will enforce an Indiana arbitration decision. Typically, the parties to an arbitration voluntarily cooperate with the arbitrator’s decision.
When one party wins a binding arbitration award, the party that loses may not desire to comply. If this occurs, the winning party can ask a court to confirm the award.
In cases handled by the AAA, the parties can agree that the arbitration award may be entered as a judgment in state or federal court that has jurisdiction over the case. The parties to the contract can also agree that the award is enforceable in court.
After an arbitration award is entered as a judgment by a court, the award can be enforced in the same way as other judgments. Every state, which includes Indiana, has its own rules about making parties comply with arbitration awards.
When an arbitration is non-binding, the award will not be enforceable under the law. Following a non-binding arbitration, the parties can file their dispute with the court if they want to.
A non-binding arbitration may not serve any goals in the legal sense. However, the parties involved may want to discuss their issues and get input from a neutral third party about their case.
Binding arbitrations, in contrast, are more similar to courtroom trials, as the decision is binding on the parties. During an arbitration, people can testify under oath and depositions can be recorded as evidence.
When arbitration is court-ordered, it is called mandatory arbitration. In these cases, an arbitrator can be sponsored by the court that ordered it.
The parties to court-ordered arbitration must comply or they can face legal consequences. Additionally, they must follow the arbitration award and will likely not be able to file a lawsuit to resolve their legal issue.
What if an Arbitration Agreement Is Violated in Indiana?
In Indiana, if an arbitration agreement is violated, it can be invalidated. The parties may have to go to court or pursue other legal remedies.
Violations can happen when a company fails to follow an agreement, for example, by not paying for the arbitration or asserting their right to arbitrate in a timely manner, which leads to a possible waiver of their right to arbitrate.
Depending on the type of violation that occurred, a court may still let the parties arbitrate or it may allow the case to proceed to court. If, for example, a party refuses to participate in a mandatory arbitration, they can face a contempt order or be subject to an injunction.
An individual may also have to pay monetary damages for breach of contract. To find out more about what happens when an arbitration agreement is violated, it is very important to have an Indiana lawyer consultation.
Do I Need the Help of a Lawyer for My Arbitration Issue in Indiana?
It can be very hard to enforce an arbitration agreement or award in Indiana without having assistance from an Indiana business lawyer. Although an arbitration may seem less formal than a courtroom trial, if you have an attorney’s help from the start, you will be more likely to secure a successful outcome.
You can find a business lawyer in Indiana easily and quickly using LegalMatch’s free lawyer matching services. In addition, if you are thinking of signing a contract that includes an arbitration agreement, your attorney will read over your contract and make sure you avoid future disputes.
You only need around 15 minutes to fill out the online submission forms and start the process of being connected with prescreened and licensed lawyers in Indiana. You will receive responses to your submission that include each Indiana lawyer’s education, fees, and client reviews.
Use LegalMatch to find a lawyer today who will help you with any arbitration needs, disputes, or concerns you have.
