Litigation is expensive, cumbersome and time-consuming. That’s why alternate dispute resolution (ADR) mediation or arbitration is fast replacing the courtroom battle. A mediator opens communication and encourages settlement. Arbitration makes final binding awards. Testimony is presented at a hearing overseen by an arbitrator who arbitrates under American Arbitration Association rules.
Nearly every civil case today goes through mandatory mediation because the courts want to settle as many cases as possible. Certain cases require arbitration by statute, but usually the parties agree to binding arbitration within their original contract. However, you can agree to arbitrate once a dispute arises.
Arbitration isn’t always preferable for a defendant because arbitration moves rapidly. Litigation can be prolonged for years. Time is always a bargaining chip for the defendant. On the other hand, arbitration can lower your legal fees, avoid punitive damage awards, and put your case before a panel of arbitrators. They are likely to render a fairer verdict than a jury.
