What is Arbitration?

Arbitration is an alternative dispute resolution (ADR) process that allows parties to resolve their disputes without having to go to court. Basically, it is a way for people to settle their disagreements outside of the court system, often times with the help of a neutral third-party known as an arbitrator. The arbitration process is private, relatively quick and cost-effective.

The Main Benefits of Arbitration

One of the biggest benefits of arbitration is that it keeps parties out of court and away from any lengthy litigation process. By opting for arbitration, parties can avoid costly court proceedings, reduce stress and save time in resolving their disputes. Additionally, arbitration is confidential and the rules of evidence are often less strict than in a trial, which gives both sides the opportunity to present their case without the worry of public scrutiny.

When Is Arbitration the Right Choice?

Arbitration is often the best option when parties are trying to preserve a business or personal relationship that could be damaged by long, drawn out court proceedings. This could be particularly beneficial in cases involving business partners, as the decision in an arbitration case can be binding or non-binding, which means parties must abide by the decision, even if it’s not favorable to one side. It can also be useful for divorce cases, where the goal is to reach a resolution in a timely manner that keeps both spouses happy.

In general, arbitration is a good alternative for resolving disputes when parties want to reach a resolution quickly and with minimal costs. It also allows both parties to have a say in the outcome, and in some cases, avoid the public glare of a traditional court proceeding.