The modern day economy has witnessed a significant rise in business lawsuits. This has driven most employers to sign business agreements with arbitration firms. What is business based arbitration you might ask? Briefly outlined, it’s a confidential, off the record process whereby all disgruntled parties put forward a written agreement to willfully present their disagreement to an arbitration entity duly certified to resolve the disputes by presenting a binding settlement.
In the realm of contract claims, a business can reap the following fruits by considering arbitration;
Cuts back on expenditure
Arbitration is less formal as compared to litigation. Litigation involves a lot of case preparation and detail exchange of information. All these can swiftly be streamlined by contemplating arbitration as it will ultimately save the client and counsel valuable time and resources. Also, it’s quite possible for the entire case to be availed before an arbitrator in a single day and an amicable solution reached without involving the courts and extra fees. This will represent a significant coup for the client and the counsel as with litigation you will never find such accomplishment.
Supreme Court litigation have bigger time frames compare to arbitrations. It takes approximately two and a half years from the date of assigning an index number to the date of conflict resolution, or 914 days to be precise. So if you are a business person and want to get over with a dispute as soon as possible, business arbitration is the way to go.
Arbitrations are less formal
Statistics have shown that most business owners are extremely nervous at the prospect of their cases coming out in public or open court for that matter. In the realm of arbitration, the settlements can be achieved at the comfort of your attorney’s office or any other place you desire which ultimately will save the face of the business and yours as well.
Costs and fees recovery
If the dispute is clearly stated and agreements put in writing, the arbitrator is at liberty to put forward all costs and fees attributed to the complainant, attorney and filing fees including to be reimbursed back to the complainant once an amicable settlement has been reached. This is a classic case in point of how careful planning and consideration can make the arbitration more beneficial to your establishment in the long run.
Logically, business arbitration is not always available for each and every dispute. However, the numerous benefits to a business and the owner make it well worth contemplating. This could be the best decision you can make for your business.