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.