An Overview of the Arbitration Process
The laws relating to arbitration differ from state to state, as do the process that is followed. This article deals with the arbitration process and, while usually similar, the details may differ in your state. It is important to note that many contracts and agreements between partners or other entities specify that any disputes that arise will be settled through arbitration. Since the arbitrator will make a final decision after the arbitration process, there is usually no concern that the parties involved will be unable to reach an agreement. However, there is the possibility that the arbitrator will recommend that the process be moved to litigation.
The arbitration proceedings are permitted to follow any guidelines that are set forth by the parties in the arbitration agreement. The agreement itself does not specify how the process will take place as long as it is permitted to follow the arbitration process guidelines do not apply. However, the process is required to meet minimum standards of fundamental fairness to help ensure that the final decision given by the arbitrator will be considered binding. This expectation means that all parties must be given an opportunity to be heard and to present evidence.
The True Value of the Arbitration Process
Business relationships are some of the most vital to your success. You rely on other people and businesses to perform to your greatest potential. When disputes arise, they can impact every step of your operation. The quality of materials or manufacturing process that you receive or the timing of deliveries can cause a breakdown in your ability to deliver to your clients.
Although you need to get a fast resolution to these disputes and get your business on track; you also need to preserve the relationships that you have with your partners, suppliers, and other entities. Entering into the arbitration process allows you to put the dispute into the hands of knowledgeable legal experts who will determine the best resolution. Once the final decision is made, you can forward quickly with the business at hand.
Benefits of Arbitration
The benefits of arbitration include a faster resolution, less time and money invested into resolving the dispute, and the greater amount of privacy the process affords over litigation. In spite of the latter, there is no duty of confidentiality unless the involved parties agree to it. Any person entering into commercial arbitration should talk with their lawyer about the inclusion of a privacy and confidentiality clause in the agreement if they are concerned that the other party will disclose information about the business that is revealed during the process or about the arbitration process itself.
Overall, the arbitration process is a faster, more private, and less expensive method of resolving disputes.