Arbitration is the alternative choice available to resolve disputes without going for litigation or trial. Both the parties have to agree that a third party arbitrator will act as both judge and jury. Arbitration can be binding or nonbinding. Quite often the parties may agree to follow the rules put down by the AAA (American Arbitration Association).
It is well known that litigations can be for a very long period of time and often can take years to settle. Unlike in litigation, during arbitration the rules of evidence and related procedures become quite relaxed. One can generalize and expect the following benefits during arbitration.
- Less expensive than litigation
- Faster process
- Lesser involvement with lawyers
- Binding and non binding arbitrations possible
- An arbitrator’s fee is lesser than that of a lawyer
- Helps sooner settlement in non binding arbitration
- As the arbitrator is not bound by the procedure rules he is more practical
- No appeals can be filed on a binding arbitration
Before deciding on arbitration it is essential for the client to reflect and see if arbitration should be preferred over litigation after considering all what is at stake including time and the money involved. The arbitration clause has to be well reviewed, if necessary with the help of a lawyer.
Managed Outsource Solutions (MOS) is US based legal services provider offering outsourced professional services in online legal arbitration, legal documentation, legal consultation, legal transcription, legal research and litigation support to clients in the UK, USA, Canada and Australia.