Managing business litigation can be stressful and time-consuming. Even worse, it can take important resources and personnel away from actually getting true business done. In most cases, it is better to avoid litigation if at all possible for the health of your business.
One very popular method of non-litigious conflict resolution is arbitration. According to FindLaw, arbitration and litigation have many things in common, but arbitration is often faster and cheaper.
What is arbitration?
Arbitration involves two contesting parties, and either an arbitrator or a panel of arbitrators. If there is a panel, typically there are 3 arbitrators: one chosen by the first party, one by the second and the third chosen by both.
The parties will put out their case to the arbitrators, very similar to how it would go in a court of law. Sometimes this involves lawyers, and other times it does not. Once this finishes, the arbitrators release their opinion on the matter. Arbitration is binding in most instances: sometimes, it is extremely difficult to overturn the decision of an arbitrator, more difficult than it is to appeal a judicial decision.
How does arbitration save time and money?
It is usually far quicker to go through the arbitration process, as you do not have to wait for space in the docket. Additionally, you will be able to choose arbitrators that are in your business vertical, further speeding things up. The process is also a great deal more flexible than a court of law.
Many companies have found great success with arbitration as a time and money-saving process for their businesses.