No matter what type of business you are engaged in, you will find that the majority of transactions go smoothly with all parties benefiting. There are times, however, when some type of dispute arises that cannot be solved without a third-party entering the conversation. When this happens, most people’s minds turn instantly toward filing a lawsuit in the courthouse where a Judge will be assigned to resolve the dispute. Arbitration can, in some cases, be a better choice, so make sure you understand what it is and how it works.
How is Arbitration Different from Litigating a Case in the Courthouse?
Arbitration is a process where you and the other party sit down with a neutral third party to discuss the issues you are facing. The arbitrator(s) will consider the details of your case and eventually, make decisions for your case. Unlike mediation, the decisions of the arbitrator are legally binding.
This takes the litigation process out of the courtroom, keeping the details of your case confidential. Both parties may also have the opportunity to participate in determining who the arbitrator(s) will be. In the courtroom, neither party has control over the judge that presides over the case.
Can You Be Forced into Arbitration?
Yes, if you signed a contract that contains a mandatory arbitration provision you can be forced to arbitrate. Courts also typically favor ordering arbitration where the parties have agreed to it in a contract. Be careful to review any agreement you are presented with for an arbitration clause before you sign.
What are the Advantages of Arbitration?
Arbitration comes with many advantages, which is why it is a popular option in many cases. First, arbitration can sometimes be less expensive than litigation. It can also wrap your case up much more quickly since there is no need to slug through a court system which is usually inundated with cases. Because arbitration isn’t as stringent as litigation, the costly discovery process is usually also expedited, or sometimes even non-existent.
We are Here for You
No matter what type of business conflict you are facing, you will want to have a good attorney on your side to consult with. If you are going to enter into the arbitration process, we can help advise you on your options to ensure you get the best results possible. Contact us today to schedule a consultation so we can discuss your specific situation.
Canales PLLC
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