1. What is Arbitration?
Arbitration is an alternative method of resolving disputes in which two parties present their individual sides of a complaint to an arbitrator or panel of arbitrators. The arbitrator, who is supposed to be neutral, then weighs the facts and arguments of both parties and decides the dispute. Arbitration may be voluntary or mandatory.
2. What is voluntary arbitration?
In voluntary arbitration, both sides in the dispute voluntarily agree to submit their disagreement to arbitration after it arises and after they have an opportunity to investigate their best options for resolving their claim. 3. What is Binding Arbitration? In binding mandatory arbitration, the parties to a contract agree to submit any dispute that may arise to binding arbitration prior to completing a transaction.
4. What's Wrong with Arbitration? Nothing, if its "voluntary" arbitration! In fact, voluntary arbitration can be a great thing in preventing lawsuits and alleviating backlogs in the judicial system. In fact, you always have the right to arbitrate.
5. What is the firms view on Arbitration? Arbitration is a viable method of dispute resolution. Often times, arbitration affords a significantly greater level of privacy to the participants than resolving their dispute in a public courtroom. So long as the forum and rules for the resolution allows for discovery, for designation of an impartial arbitrator who is a retired judge or an attorney, and does not give one side to the bargain an advantage over the other, arbitration is just another method of resolving a dispute. An arbitration clause should be coupled with a mandatory mediation clause. |
