Private courts, such as mediation or arbitration agencies, are used instead of civil courts to resolve legal disputes. They are often used for family, business, tenant-landlord, or labor law issues. Decisions made in private courts are not always binding, and lawyers are not required. Mediation is non-adversarial and often used in divorce cases, while arbitration is similar to civil court proceedings and often used in labor and business disputes. Private courts are less expensive and allow for more timely conflict resolution.
The term “private courts” refers to mediation or arbitration agencies that are used in legal disputes in place of civil courts. Private courts are usually used because parties to a conflict wish to avoid a public trial and want to resolve the issue in a more timely manner. Disputes that are often resolved in private courts include family law matters, such as divorce, alimony, custody and child support; business conflicts; tenant-landlord issues; or labor law issues. Decisions made in a private court are not necessarily binding: if a resolution that satisfies both parties cannot be reached, a civil suit can be pursued.
Mediation is one of the most common forms of conflict resolution practiced in private courts. It offers non-adversarial dispute resolution where a neutral third party assists in resolving the conflict with the interest of both parties in mind. The mediator typically helps the parties find a workable solution on their own, rather than just making a decision as a judge would in a civil case. If such a resolution can be reached, the parties will often sign a settlement agreement, which is considered binding. Mediation is often used in private courts in divorce cases and can help resolve issues relating to custody, visitation rights and how to divide joint property.
A private court may also use arbitration to resolve disputes. As a process, arbitration is similar to civil court proceedings: The arbitrator listens to both parties’ arguments and evidence before making a binding decision. Before initiating the arbitration, the parties involved must sign a contract identifying what will be decided and who will serve as arbitrator. Arbitration in private courts is often used because the parties wish to avoid the time and cost of a civil suit. In labor and business disputes, arbitration is usually the preferred resolution method.
Because mediation requires some degree of cooperation between the parties, it is usually best for conflicts that have not turned hostile. On the other hand, arbitration is often the best means of resolving disagreeable parties, because the arbitrator resolves the situation objectively. In some cases arbitration is even mandatory, such as disputes involving unions and management.
Lawyers are not needed in private courts, but many individuals choose to seek the advice of a lawyer before entering into mediation or arbitration. Both processes are usually administered by independent agencies, but the fees involved are usually less expensive than civil court fees, and private court hours usually allow for more timely conflict resolution. Usually, the nature of the dispute and the relationship between the parties involved will determine whether private courts are a viable option for resolving a conflict.
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