No one starts a business thinking he would get into a dispute with his business partners one day, but that does not mean it never happens. Conflicts and disagreements are inevitable in the business world. Unfortunately, there have been hundreds of cases in which business partners had disputes. While many would prefer taking the conflict to the courtroom, others want to avoid going to the court to save the partnership and their reputations. But the question is, how do they resolve the dispute if they do not take legal help? The answer is an arbitration program! One binding arbitration definition can be that the decision made by the arbitrator is final, and parties have to agree on that.
Other arbitration programs have been the choice for people who want to resolve the conflict without spending expensive filing fees in court cases. Below, I have mentioned why you should choose arbitration over litigation. If you are interested, continue reading.
1. The Dispute will be Resolved Faster than Litigation
According to the American Arbitration Association report, U.S. District Court cases typically take between 12-16 months longer to get a date than cases through arbitration. Therefore, arbitration has become the preferred choice for the parties to resolve the conflict. Today, no one has the time to attend the long court hearings and consultations to resolve a dispute. In this regard, arbitration has become a process that can be easily organized, and the results are always productive. You can get a date for the arbitration a lot faster than trying to get a court date over the same matter. That is why it is wiser to resolve the dispute through it.
In the arbitration, mostly the contract holders are involved and responsible for organizing, setting precedes, and procedures of the rulings. Moreover, the availability of an arbitrator makes it more suitable than a courtroom judge, making the whole process much faster.
2. It is Private and Confidential Compared to Litigation
Generally, arbitration proceedings are held in private, which means you will not have to testify publicly. The parties involved can agree on keeping the proceedings, details, and terms of the final resolution confidential. However, this may be untrue for every case because the information exposed during the process may become public. However, in the case of binding arbitration, confidentiality is guaranteed, as no one except the parties involved knows about the dispute. On the contrary, in legislation, private or embarrassing matters cannot be hidden from the public.
3. Arbitration is Less Costly than Litigation
Arbitration is often less expensive than court litigation, probably because of the packed schedule to complete discovery and trial. It takes less time to resolve a dispute means lower costs for attorneys’ fees. Moreover, discovery and appeals are very limited, so those costs are all saved. On the other hand, in court proceedings, a significant amount of money is put into pre-trial discovery processes, including written interrogatories and statements of witnesses. As a result, one end up paying more money
4. The Choice of Selecting an Arbitrator
If you have included it in your arbitration agreement, you can choose the arbitrator responsible for determining the result of the dispute at hand. Instead of being assigned a random judge, parties can select an arbitrator of their own choice. Choosing an arbitrator with subject matter knowledge will particularly be beneficial in difficult cases that require specialized knowledge.
5. Parties have Flexibility and Control
Compared to court litigation, parties have control over setting terms in their arbitration agreement. They can decide how the process will work. It will include creating rules about discovery, trials, time limits, and other matters related to the dispute. In addition to this, they can also set the timetable for hearings and deadlines as per their convenience.
6. You can Avoid Hostility
In court cases, fights and disputes over a single issue are a common thing. It often leads to the hostility that may never go away and may make it difficult for both parties to do business even after the issue is resolved. On the contrary, arbitration offers you a more relaxed environment. While there is an ongoing conflict between both parties, it will be a lot easier to manage without aggression because an arbitrator is present. Finally, both parties will have to meet at the middle ground.