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Arbitration
Arbitration is an adversarial process where a neutral arbitrator renders a
decision, called an award, after there has been a presentation of evidence. Like
a court trial, arbitration may include representation by counsel, pre-hearing
discovery, written briefs, examination of witnesses and oral argument.
The
advantages of process arise from the ways in which arbitration differs from a
court trial. First, arbitration procedures are flexible and less formal. This
flexibility can lead to significant cost savings in terms of time and expense.
Another benefit is that an arbitrator is selected with the requisite amount of experience and subject
matter expertise to render an accurate award. Finally, the arbitration process
is private, confidential and binding.
Contractual
arbitration
and
arbitration by stipulation
are
private and binding. Here, the parties have chosen to go to arbitration instead
of through a court trial. There is no appeal process in traditional arbitration
and thus the award of the arbitrator is the final except for the most
extraordinary circumstances. In contractual arbitration, the parties have
agreed pursuant to a contract between them that in the event of a dispute, the
matter will be arbitrated. Generally, there will be a set of rules or procedures
incorporated into the arbitration clause that dictate how the parties will
proceed. Under an arbitration by stipulation scenario, the parties have agreed
to arbitrate after the dispute has risen. The parties must then choose which set
of rules and procedures to follow to guide the proceedings.
Forms:
Demand
for Arbitration
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