Arbitration has been a part of dispute resolution for a while now. In fact, it is one of the oldest methods used in settlement of disputes. Some people prefer it over court litigation because it offers significant benefits to both parties. Here are some of the reasons as to why it is preferred over court litigation in some instances.
Advantages of arbitration
Arbitration gives the disputing parties the right to exercise some authority in the proceedings of their case. They have a say in how they want the process to be handled from the initial stages all the way to the day that the final verdict is given. The process can accommodate their needs, and that is simply impossible in the court litigation process. Some of the decisions that can be made by the parties include the length of the process, how the hearing will be conducted, and pre-screening of the arbitrators. All these decisions are however made in the contractual stage.
It is cost effective
Solving a legal case will involve spending of some money. The costs of the attorneys are the most significant costs, and they increase till the case is resolved. Therefore, a case that will take a long time to be resolved will be expensive. One of the good things about arbitration is that the cases are solved in a short span of time. This, therefore, minimizes the attorneys’ fees because of the short time span it takes for the case to be concluded.
They are private
The arbitration hearings are conducted in a confidential place, and the only ones who can attend are the parties involved and the delegated counsel. This is unlike the court process which has no boundaries thus the public can attend the sessions. Moreover, in the arbitration process, the parties can decide to keep the matter between them. In the court litigation process, pleas to seal the deal and keep it in the low are seldom granted. Some arbitration processes may even go to the extent of having policies regarding the confidentiality of the matter to ensure that it remains private.
Lack of bias
Studies have shown that the arbitration process is fair as compared to the court litigation process. This is because the cases are handled by two to three arbitrators and they will all make rationalized decisions to conclude the case. They are less likely to be influenced to make a decision that favors one party as compared to a single judge sitting on a bench. Therefore, the whole process will be fair and less biased.…Read More