How is arbitration better than litigation?
Arbitration is a method of resolving disputes outside of the traditional court system, and it can offer several advantages over litigation.
One of the main benefits of arbitration is its speed and cost-effectiveness. Arbitration proceedings can be scheduled and concluded faster than standard court cases, saving both time and money for all parties involved. Additionally, the parties involved will typically have a say in selecting the arbitrator - often picking an expert in the dispute's subject matter. This specialized knowledge of the arbitrator can contribute significantly to resolving the conflict promptly and fairly.
Unlike formal court processes, arbitration is more casual with less stringent procedures and rules of evidence. This informality often leads to faster resolutions and fewer disputes over procedural matters. Plus, the flexibility of arbitration allows parties to adapt the proceedings according to their specific needs.
Arbitration also offers more privacy and confidentiality than court proceedings, which are usually public. Court records are also typically open to anyone who wants to see them. But in arbitration, the proceedings are private, and the records aren’t publicly available. This can be especially important in disputes involving sensitive or confidential information.
Moreover, arbitration allows the parties to choose the location for the proceedings (whether in-person, online, or by telephone). This flexibility can be more convenient for everyone involved.
It is important to note that arbitration is not always the best option for every dispute. Sometimes, parties may need the protections and remedies that the court system provides. They might also prefer the transparency and public oversight of a court proceeding.