The arbitration process provides more room for flexibility, including the timing of hearings and even the rules that govern the proceedings. Litigation is much less accommodating, with strict court schedules and little room for parties to tailor the process.
Compulsory Arbitration is a mandatory program for disputes valued under $50,000. A court-appointed arbitrator reviews the case to decide a just resolution and award.
Arbitration is similar to going to court, but faster, cheaper and less complex than litigation. If the case settles, an arbitration will last around one year. If the case goes to hearing, an arbitration typically takes 16 months.
Disadvantages Questionable Fairness. Mandatory arbitration. Finality: No appeals. While this may be a positive if you find the arbitration decision favorable, you should be aware that if arbitration is binding, both sides give up their right to an appeal. Can be more expensive. Unpredictability: Unconventional outcomes.
To give you an idea of the process that arbitration typically involves, the American Arbitration Association describes artibtration as having five main steps: Filing and initiation. Arbitrator selection. Preliminary hearing. Information exchange and preparation. Hearings. Post hearing submissions. Award.
Necessary Elements Details of the Parties. Details of the relationship between the parties. Demand for Arbitration. The mention of agreement/contract (if any). The mention of already existing arbitration agreement between the parties pursuant to which the concerned notice of arbitration has been sent (if any).
Always get straight to the merits without berating the other side or whining about how badly it has treated you. Another threat to your credibility is the “kitchen sink” arbitration demand or a response that includes numerous claims or defenses that have little chance of succeeding.
There are typically seven stages of the arbitration process: Claimant Files a Claim. Respondent Submits Answer. Parties Select Arbitrators. Parties Attend Initial Prehearing Conference. Parties Exchange Discovery. Parties Attend Hearings. Arbitrators Deliberate and Render Award.
Parties will need to provide material evidence during the arbitration process. Some arbitrators may require that some types of evidence (such as invoices, pictures, and party correspondence) be presented in a specific format, such as in a binder and labeled in a certain order.
Compulsory Arbitration is a mandatory program for disputes valued under $50,000.