In recent years, arbitration has become an increasingly popular method for settling disputes. In today’s blog post, we are taking a look at some of the major differences between arbitration and traditional litigation.
Many people don’t have a clear understanding of what arbitration is. At its core, it is a form of dispute resolution in which a neutral arbitrator or a team of neutral arbitrators hold an informal meeting with the disputing parties to hear their evidence. Then they make a binding decision to resolve the case.
Florida’s Arbitration Code is contained in Chapter 682 of state statute. It grants authority to voluntary binding arbitration. What this means is that if your contract contained an Arbitration agreement and now you’ve found yourself in a dispute, the courts will probably enforce mandatory arbitration.
Now let’s take a look at some of the key differences between arbitration and litigation.
Timeline: Usually arbitration can be completed much more quickly than litigation. Since you don’t have to snag a spot on a busy court docket, things tend to get moving faster. This also makes scheduling more flexible for participants. Appeals occur far less often in arbitration, also contributing to the speediness.
Finality: Arbitration decisions are final. If you think you’d want to appeal if you were to lose, you may be better off going with traditional litigation. A court can usually only turn over an arbitrator’s decision if there is evidence of corruption or fraud.
Privacy: Disputes settled in court through traditional litigation become a matter of public record. Disputes settled through arbitration remain private.
Deciders with background knowledge: In court, you will be assigned a judge who will likely have very little background knowledge about your business or industry. When you settle a dispute through arbitration, on the other hand, you can select an arbitration who has a great deal of experience in your field. Their better understanding of the subtleties and nuance of your case can lead to a more satisfactory decision.
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Whether you are in the midst of a dispute or you’re entering into a business relationship and want to know what you can do to protect yourself in case disputes arise, The Cueto Law Group is here to help. Our team has experience in representing clients in litigation as well as with arbitration. Contact us today to learn more about our services and how we can help you and your business.