Arbitration is a method of resolving a dispute in which an impartial third party – the arbitrator – listens to the facts and arguments presented by the parties. The arbitrator then makes a decision on the issues in the dispute. This is different from mediation. In mediation, all of the parties must agree to the solution; the mediator cannot impose the outcome on the parties.
The arbitrator is selected and agreed upon by all of the parties to the dispute. This is different from going to court. When you go to court, you have whatever judge is assigned to your case; you do not have a choice.
Arbitration hearings are not held in court houses. Instead, the parties and the arbitrator decide on where the arbitration will be held.
Lawyers and paralegals can represent people in arbitration cases, just like they do in court cases. But some arbitrations take place without lawyers being involved.
In arbitration, the parties are able to set some of their own rules for how the hearing will be conducted. A court case, on the other hand, follows rules that are pre-set.
Even before Covid-19, arbitration was faster than going to court. With the back-log in the courts now because of Covid-19, arbitration is even faster than having your case heard by a judge.
Judges tell you when to show up in court. Arbitration, on the other hand, is done at times that are usually more convenient to the parties.
Unlike court, when you show up for the arbitration hearing, you are not in the same room as a dozen other people. In arbitration, you also do not have to sit and wait for other cases to be heard ahead of yours. You are the only case being heard by the arbitrator at that time. Not only is that a time saver for you and any witnesses you have, it is also a cost saver.
While all disputes cause a certain amount of stress, arbitration is generally less stressful than going to court.
Sometimes the parties do not want everyone knowing their personal business. For most cases, the documents that are filed in a court case are available for the public – including the media – to see. The public can also attend most court cases. Arbitration, on the other hand, is conducted in private. Therefore, your competitors, the media and your neighbours are not able to read any of the papers which are filed or attend any of the arbitration proceedings.
Yes, the parties have to pay for the arbitrator, whereas judges are paid by the government through our tax dollars. But even when you factor in the cost of the arbitrator, arbitration is usually less expensive than going to court.