Arbitration is a private dispute resolution process where an arbitrator hears a case and makes a final decision. It is usually binding, but parties can agree to non-binding arbitration. The process is similar to a trial, but with more flexibility and control over the process and outcome. Parties can set guidelines and time limits, and the arbitrator can actively participate in the case. The arbitrator usually has about a month to decide the outcome.
The arbitration process is a kind of dispute resolution procedure in which an arbitrator hears a dispute in a private context and makes a final decision for the parties involved. The arbitrator will typically specialize in the specific area of the dispute, such as business-related matters, employment-related matters, or even sports-related matters. The arbitration process does not take place in a courtroom and there is not an emphasis on the technicalities of the law as there would be in a judicial proceeding. Also, arbitration is usually binding, but if the parties agree in advance to have non-binding arbitration, this is permissible.
If the parties decide to follow traditional guidelines, the arbitration process will look almost like a trial in court. There will usually be an opening statement from each party first. Then, the requesting party will present its case to the arbitrator. Through the arbitration process each party will tell the arbitrator what it believes the results of the arbitration will be and why it should be victorious. There may be witnesses and evidence, and closing statements will conclude the trial.
As part of the arbitration process, the parties to the dispute may set guidelines or benchmarks before the arbitration hearing takes place. By setting the guidelines, the parties have little control over how the hearing will play out; however, once the hearing begins, the arbitrator has control over the arbitration process and the final outcome. For people who don’t want the outcome to be determined by a third party, negotiation is a better option. Through negotiations, the parties have full control over the process and the outcome.
One benefit of using litigation arbitration is that the parties can develop an arbitration process that suits their individual needs when drafting the arbitration clause in the contract between the parties. For example, they may agree to participate in nonbinding arbitration or they may decide whether or not the evidentiary rules followed in court apply. Additionally, they can set perimeters on how much lawyers will be involved or even decide that there will be no lawyers involved at all. Additionally, they may set time limits for the arbitration hearing itself.
One major difference between arbitration and litigation is that the arbitrator has more leniency than a courtroom judge. In particular, the arbitrator can actively participate in the case by requesting further evidence or by asking for other witnesses. Furthermore, the arbitrator usually has about a month to decide the outcome of the dispute. The arbitrator may state the reasons for its award or simply state the outcome without mentioning how it reached that conclusion.
Protect your devices with Threat Protection by NordVPN
