Advantages of Arbitration

Litigation is a very hostile environment, making arbitration a much better option for people that benefit from working together. Court proceedings also cost more than arbitration, even with lawyer and arbitrator fees under consideration. The arbitrator chosen may be an unbiased third-party with no financial interests involved. In Arbitration, the evidence is under less scrutiny from rules and procedures are a lot more flexible. Also, it is easier to schedule arbitration at your convenience and meetings are usually held in private.

Some of the Advantages of Arbitration may include:

• Faster process than litigation.
• Oftentimes cheaper than litigation.
• Confidentiality and privacy.
• Language selection.

Disadvantages of Arbitration

If the arbitrator in arbitration renders an unfavorable decision, you’re stuck with it; making it vital to have a completely unbiased and neutral arbitrator. A court may provide a list of arbitrators wherein both parties can cross out the arbitrators they don’t want—letting the court select a random arbitrator from the remainders in the list. Arbitration may be cheaper than litigation in many cases, but it may still be very costly. Arbitration is usually a standard clause for breach of contract in many agreements, placed by companies who benefit more from keeping the matter out of litigation.

Some of the disadvantages of arbitration (ADR) may include:

• Rules of arbitration may depend on one-sided terms from a binding agreement.
• Conflict of interests leading to unfair and biased judgment by the arbitrator if they depend on one of the disputing parties for repeat business.
• Less transparency due to the confidential and private nature of arbitration.
• An unfair or bad decision may have limited room for change.
• Favorable decisions may not be as enforceable without judicial intervention.

Spiegel & Utrera, P.A. is on your side. Before signing any agreement, give us a call for us to review the arbitration clause in your agreement. To ensure that you get the best legal outcome in arbitration and avoid all pitfalls, you should hire an arbitration lawyer that understands the process and can help you achieve settlements that may have otherwise been unknown or unavailable to you. We can help! Give us a call at (800) 603-3900.

The Advantages of Arbitration as an alternative dispute resolution

Arbitration is a method of alternative dispute resolution (ADR). Most agreements will have arbitration as a clause for the event of a breach of contract—therefore, the rules of arbitration vary greatly and depend on the terms of arbitration specified in the contract. It’s highly encouraged to read the agreement thoroughly and check for arbitration terms. The opposite party is required to provide written notice when amending arbitration terms. You may request arbitration terms to be amended if you deem them unfair or inconvenient—and if the other party wants your business bad enough—they will likely do it for you. If you’d like a quick, inexpensive, and accurate review of your agreement, contact us by clicking here now or giving us a call. Don’t allow unfair advantage from forcefully binding arbitration clauses involving one-sided rules and small print for pre-dispute adjudication.

It’s good to note that agreeing to arbitration is done in one of two scenarios:

• Before the dispute emerges, in signing an agreement with an arbitration clause.
• After a dispute occurs, by signing an agreement stating that the matter shall get settled through arbitration.

Arbitration Agreement Clause

When drafting a contract, both parties should pay very close attention to what will happen in the event of a breach. As a signatory, you should be able to predict what exactly will legally happen if a party were to breach the contract. For example, including a mandatory arbitration clause in the event of a lawsuit can be an effective method for resolving future disputes. The terms, conditions, and rules of arbitration may also vary depending on what’s written under the arbitration clause. The arbitration clause can be designed to give an individual or entity a legal and business advantage over the other party. We can help you create an ironclad agreement achieving favorable yet win-win scenarios for both you and the other party. If you’re on the receiving end of an unfair advantage from an agreement or it’s arbitration clause, you may need legal representation! Call our expert arbitration lawyers at (800) 603-3900 for a free consultation!

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