Written by Tana Fye
Arbitration is an alternative to traditional dispute resolution methods, such as a court case and trial. It is a private, streamlined process where parties agree to submit their differences to a neutral arbitrator. It can also be utilized after a court case has been filed as a method for resolution of the court case short of a trial. Some television “court” shows such as Judge Judy are not actually court proceedings at all, and are in fact arbitration.
The process typically follows these key steps:
- Agreement to Arbitrate: Before any dispute arises, the parties involved enter into an arbitration agreement. This agreement may be a standalone contract or a clause within a larger contract or agreement. It stipulates that any future disputes related to the contract will be resolved through arbitration.
- Selection of Arbitrators: Once a dispute arises, the parties mutually agree on the selection of one or more arbitrators. These arbitrators must be impartial and possess expertise in the relevant subject matter to ensure a fair and informed decision.
- Preliminary Proceedings: Before the formal arbitration hearings, there may be preliminary proceedings, such as pre-arbitration conferences or written submissions, to clarify the issues and set the ground rules for the arbitration.
- Hearing: The arbitration hearing is similar to a trial but less formal. Both parties present their evidence, witnesses, and arguments to the arbitrator(s). The proceedings can be held in person or virtually, depending on the agreement and convenience of the parties.
- Decision: After considering all the evidence and arguments, the arbitrator(s) render a binding decision, known as the arbitral award. This award is enforceable by law and generally not subject to appeal unless there is evidence of misconduct or a serious procedural error.
- Enforcement: Once the arbitral award is issued, the prevailing party can enforce it through the courts, seeking a judgment to compel the losing party to comply with the award.
It’s important to note that arbitration is a private and confidential process, unlike court proceedings, which are generally open to the public. Additionally, arbitration offers more flexibility and autonomy for the parties, allowing them to tailor the process to their specific needs and preferences.
The arbitration process is particularly popular for resolving commercial disputes, international matters, and complex cases where parties seek a faster, more specialized, and cost-effective resolution compared to traditional litigation.
There are both pros and cons to the process that are highly fact and case specific, so generalizing to all cases is difficult.