Arbitration

The arbitration process is similar to a trial in that the parties make opening statements and present evidence to the arbitrator. Compared to traditional trials, arbitration can usually be completed more quickly and is less formal. For example, often the parties do not have to follow state or federal rules of evidence and, in some cases, the arbitrator is not required to apply the governing law.

After the hearing, the arbitrator issues an award. Some awards simply announce the decision (a “bare bones” award), and others give reasons (a “reasoned” award).

The arbitration process may be either binding or non-binding. When arbitration is binding, the decision is final, can be enforced by a court, and can only be appealed on very narrow grounds. When arbitration is non-binding, the arbitrator’s award is advisory and can be final only if accepted by the parties.

Arbitration is generally faster compared to litigation; however, there are a variety of factors that influence how long the arbitration will take, and no two arbitrations will be exactly the same. Accordingly, the length of the arbitration can vary greatly. The arbitration process will generally move through the following steps:

• Initiation – the demand, statement of claim, and answer
• Arbitrator selection – usually the parties select
• Discovery – the exchange of information between parties
• Hearing – like a trial, the parties present their cases to the arbitrator
• Award – the arbitrator will make and render a decision

Arbitrators generally have the authority to order discovery as the arbitrator considers necessary to a full and fair exploration of the issues in dispute, consistent with the expedited nature of arbitration. All discovery disputes arising out of arbitration must be submitted first to the arbitrator.

Arbitrators also have the power to make interim awards and orders where necessary to safeguard the subject matter or effectuate the proceedings, including injunctive relief and measures for the protection or conservation of property and disposition of perishable goods.

Arbitrators have power to issue subpoenas for witnesses and for production of documents, records and evidence at the hearing.

Arbitration can often be finalized more quickly than litigation in the state or federal court systems. Arbitration is also entirely private: there is no publicly searchable database of pending arbitration cases or their results. Arbitration can also be less formal than litigation. Of course, this depends on the complexity and size of the controversy. Smaller matters such as a consumer purchase can be resolved in a matter of months and via email exchanges and conference calls. More complex matters, such as a large construction project, will likely take over a year to resolve, and may require several in-person appearances in a faraway location and extensive personal testimony.

No. While arbitration and mediation are both forms of alternative dispute resolution (ADR) to resolve conflicts outside of a courtroom, there are significant differences between the two processes.

One or more arbitrators decide the outcome of a dispute subject to arbitration. The arbitrators act as judge and jury who will review all evidence and hear witness testimonials before rendering a decision on the matter or an “arbitration award.” The court of law takes the decision of which side wins, and the damages figure as legally binding and enforceable.

In mediation, a neutral third party or mediator helps the disputing parties reach a settlement agreement. The mediator does not represent or advise the parties involved but rather answers questions to probable outcomes and allows the parties to create their own agreement. The court will render the agreed to settlement as legally binding and enforceable.