If you are someone who has a business or company, you should be familiar with the word ‘arbitration’. Of course, one would like the event all together if possible, but if you intend to work with other businesses and companies, you should be prepared for anything.
Usually, when you conduct business with another individual, you try to respect each other’s boundaries and act professionally. This can ensure that the deal goes through, and you have a partner for collaboration and expansion of your business. Then, any litigation whatsoever would end there. This would be the ideal experience for both parties.
However, things can go south really fast. Let’s say that your partner ends up failing you, what are the next steps in the process? You would go to your lawyer, and get advice. The first thing they would suggest is arbitration. Because, let’s be honest, no one wants to go to court as it can be a long and tiring process. So, instead of doing that, you and your partner could agree on an arbitration.
What is arbitration exactly? It is basically a trial that is private and paid. Both parties agree to submit their documents and arguments to a third-party, a neutral arbitrator. Then, both parties present their arguments while the arbitrator handles the case.
Here are a few reasons why arbitration should be considered before heading to court.
Arbitration is less costly
Arbitration can prove to be less expensive compared to litigation. Although, it should be noted that it is not always the case, just most of the time. Arbitration takes up less time, and less people. So, when the issue is solved quickly, you do not need to pay more. Plus, it takes up less energy, time and money to set up arbitration sessions compared to court proceedings.
Arbitration is flexible and efficient
If you choose arbitration, your issue can be solved at a much quicker rate. The problem with litigation is it can take months, even years, to solve an issue at court. Plus, court trials usually depend on the availability of judges and other staff. You will be competing with thousands of other cases that need court sessions, so do not be surprised if you end up getting a session after a year or more.
Arbitration is more simpler
The issue with litigation is that it is a long and complicated process. You need to fill out the appropriate forms, get permissions, file motions and attend court proceedings that can be overwhelming. Arbitration on the other hand, is much simpler in terms of rules and regulations. Arbitration has less protocols to it, so it reduces time and effort. A lot of the tasks, such as submitting evidence, and listing out witnesses and documents needed can be figured out with a phone call with the arbitrator.
If you intend on holding an arbitration meeting, you can now do it virtually through virtual hearings. These hearings can be incredibly efficient, especially during the pandemic. …
