Arbitration is a common way to resolve legal disputes, but it isn’t right for everyone. To determine whether arbitration is appropriate for your case, you should learn about its pros and cons. By knowing more about the process, you can make informed choices when signing contracts that contain arbitration clauses.
Advantages of Arbitration
Arbitration is a way to efficiently resolve disputes, and it offers the following advantages over litigation and trial:
- It helps to avoid hostilities – Because parties are encouraged to participate in the conflict resolution process, they are likely to work together rather than agitate one another.
- It’s cheaper than a court case – Arbitration is increasing in price as more lawyers take such cases. An arbitrator can charge thousands of dollars per day for his or her services, and most people hire lawyers to work on their behalf. However, arbitrating a case is usually less expensive than taking it to trial.
- Simpler procedures and evidentiary rules – Complex rules don’t apply to arbitration proceedings, making them more adaptable. Arbitration doesn’t have the discovery phase, which is sometimes used as a stalling tactic by an Attorney in Walker MN.
- Greater privacy – Most proceedings are privately held, and parties often agree to keep resolutions confidential.
Knowing about the disadvantages of arbitration can help you make a decision as to whether to go ahead with transactions requiring it.
- Limited legal recourse – Final decisions are hard to get out of, and if an award is unjust, you may have no other choice.
- Unfairness – Some believe that the final nature of arbitration works to the advantage of large companies, and to the detriment of those who have less money and influence.
Tips for Consumers
There are many perils for those going into arbitration, but thankfully there are steps you can take to protect yourself. You should know the terms of the agreement. If it binds you to arbitration, take your business elsewhere. If you find an agreement’s arbitration clause unfair, you may be able to negotiate with the help of an arbitration Attorney in Walker MN from Business Name.