Litigation vs. Arbitration

     Arbitration clauses are becoming more and more prevalent in contracts, as well as in terms of accepting employment.  What are the pros and cons of arbitration?  Look below to find out.

Pros:
1)  Speed.  Arbitration can take as little as 60 days if it is a case that involves less than $75,000.00.  Litigation, on the other hand can take anywhere from 9 months to over a year if the case is continued.

2) Cost.  Since arbitration takes less time than litigation, the costs involved are substantially less.  Also, arbitration only allows a limited amount of discovery, also the costs involved. 

3) Arbitrator v. Judge.  In arbitration, the arbitrator is usually an individual who has specialized in the type of law that the arbitration involves, or has a large breadth of knowledge on the topic.  On the other hand, judges may not know a lot about the type of case being presented, and therefore may not make as much of an informed decision that an arbitrator would.

4) Confidentiality.  Usually an arbitration is private, and the dispute itself and the terms of any agreement are kept private and confidential.

Forum.  Arbitration can agreed to be held in any location, even if the act occurred elsewhere.

Cons:
1) Discovery.  In arbitration, there is a limited amount of discovery.  While this can keep costs down, it also can limit the ability to prove your case.

2) Appeal.  In arbitration, you cannot appeal your case.  Once a decision is made, it is binding and appeals are not allowed, unlike in litigation. 

If you have a question regarding an employment situation, please contact Ambuter Law for a free case evaluation.