Legal

In a nutshell, Arbitration is the process whereby a dispute is submitted to one or a panel of three individuals—the “arbitrators”—for a final and binding determination, known as the award.

Arbitration or Private Judging returns control over the process, the pace, and the tone, to the parties. Private judging and arbitration are becoming more common as funding to the courts is cut, courtrooms are closed, State employees are furloughed, the demand for judicial relief grows, and wait times for cases to be heard increases significantly.

The Arbitrator conducts itself similarly to a judge. The Arbitrator conduct the hearing, listen to opening and closing arguments, witnesses, experts and other testimony, weigh evidence, review the information provided by both parties, and render an award enforceable in court. The case is usually administered by a neutral Arbitration service provider who provides the parties with a set of defined rules under which the Arbitration will be conducted, as well as setting the fees for the Arbitration. Normally, for arbitration to take place there must be an Arbitration clause in a contract. Although parties may enter such an arrangement either at the beginning of their contractual relationship or at some later date after the controversy has arisen, the former is more common.

Arbitration is designed to be user-friendly. In comparing arbitration to formal courts, it is helpful to note these major features of arbitration:

Informal procedures

There are no formal rules of evidence in arbitration as in courts. All forms of evidence are acceptable, and it will be the arbitrator’s job to apply the appropriate weight to evidence presented. The arbitrator may curb any testimony that is irrelevant or repetitious. The parties are entitled to be represented by anyone of their choosing. Although they may choose an attorney, the parties are not limited to representation by an attorney. Both parties may make a personal presentation of their claim, 4 including testimony, witnesses, evidence, experts, and closing statements. Each party may question and rebut the other person’s testimony, witnesses, and evidence.

Objective and knowledgeable neutrals serve as arbitrators

Unlike courts, where a judge is assigned to a case, arbitrators are selected by the parties for the specific cases because of their knowledge of the subject matter. They cannot be biased towards the business or consumer.

Arbitration Can Be Confidential

The parties may decide whether the hearings are closed, and the proceedings are not a matter of public record.

Economy

The costs of arbitration proceedings are generally less than costs of formal courts. Speed. Arbitration is much faster than going to court. Most consumer disputes are resolved in one day or less.

Final and binding awards

Arbitrators may grant any remedy or relief that the arbitrator deems just and equitable, and the award is binding and enforceable in court.