One of the more popular Alternative Dispute Resolution (ADR) techniques is arbitration. As an effective and affordable process, arbitration is a private, judicial determination of a dispute, by a non-affiliated third party. The disputing parties have no control of their outcome, and hand the power to decide the dispute to the appointed arbitrator. Arbitration resolutions are final and binding, unlike other ADR techniques such as mediation and negotiation. Before deciding to proceed with arbitration, it’s recommended that parties seek the counsel of an Orlando construction lawyer for assistance.
How Does Arbitration Work?
Arbitration is a formal way to resolve a dispute. During the process, the opposing parties will both present their case to a third party, known as the arbitrator. After the arbitrator listens to both sides of the case, taking into account the evidence presented, they will make a determination. The arbitrator’s decision is both private and binding, unless the parties mutually agree to an advisory opinion.
Benefits of Arbitration
Compared to other ADR techniques, such as mediation and negotiation, arbitration is more structured. However, it is still more flexible and less expensive than the litigation process. When choosing arbitration, the parties have the ability to decide how formal the procedure will be, and what rules need to be followed regarding evidence.
What are the General Principles of Arbitration?
There are a few general principles that make up the process of arbitration.
- The main objective of arbitration is to receive a fair resolution of disputes with the assistance of an impartial third party without any unnecessary expenses or delays.
- All parties involved should be free to agree on how to resolve their disputes. Parties are not able to move forward with arbitration if not all parties agree to that method of ADR.
- Courts should not interfere with the arbitration process
How are Arbitrators Appointed?
The most common method for selecting an arbitrator is directly by the disputing parties, either by mutual agreement or by each party appointing one arbitrator.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.