WHAT IS ARBITRATION?
Arbitration is an alternative dispute resolution method to court. An arbitration agreement requires that the two parties seeking a dispute resolution settle the dispute through binding arbitration. In binding arbitration, a dispute is submitted to a neutral party who hears the case and decides on the resolution. The resolution decision is strictly decided by the neutral arbitrator and the disputing parties are legally bound to the settlement. An arbitration hearing is less formal than a traditional court hearing and can be much shorter.
WHAT ARE THE BENEFITS OF ARBITRATION?
Arbitration can be very beneficial to individuals seeking a dispute resolution for the following reasons:
Arbitration is less formal and technical than court
A resolution may be reached quicker in arbitration
Arbitration can provide a private forum for the parties involved
WHAT ARE THE COSTS ASSOCIATED WITH ARBITRATION?
The costs of arbitration may be higher than the costs associated with a court case depending on the claim. Arbitrators may charge an hourly or daily fee that vary from arbitrator to arbitrator. Although arbitration provide the opportunity for a shorter dispute resolution process than a court hearing, the costs can still be higher.