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What is arbitration?

Alternative dispute resolution, or ADR, is very popular in civil litigation. In fact, particularly if you are a business owner, it is generally wise to avoid litigation at all costs. Litigation is expensive and very time-consuming.

However, there are multiple ways of resolving potential disputes. One popular method of ADR is arbitration. According to FindLaw, arbitration is often a less expensive and far more streamlined approach to managing a dispute between parties as compared to litigation.

Arbitrators vs. judges

One of the major differences between litigation and arbitration is that litigation involves a judge whereas arbitration involves a single arbitrator or a panel of arbitrators. The benefit to having a panel of arbitrators is twofold. The first is that it is highly likely you will be able to assemble a panel of arbitrators far quicker as compared to reserving a slot on the court docket.

The second benefit is that, unlike judges, it is possible for the feuding parties to assemble a panel of experts on the subject at hand. So, for example, if the dispute focuses on a construction issue, the panel of arbitrators can be construction experts. This is in contrast with a traditional judge, who is a law expert only.

Streamlining the process

Another major benefit of arbitration is that arbitrated matters do not become part of the public record. This means that you can keep your disputes away from the public eye. You also have a greater ability to streamline the procedures and rules associated with the arbitration process as compared to those associated with a court of law.