General Information on Arbitration

What is Arbitration?

Arbitration is one of the many legal processes of resolving disputes. Two or more parties refer the dispute to an impartial person (called the arbiter or arbitrators), or group of persons (arbitral tribunal) who have no interest in the case, and in whose decision the parties agreed to be bound. Arbitration can be binding or non-binding; or voluntary or mandatory.

How does it differ from Mediation?

In mediation, the competing parties agree to discuss the dispute with the aid of a mediator. However, unlike in arbitration, the mediator only guides the parties in achieving their desired result by pointing the strengths and weaknesses of their respective arguments. The mediator does not make the decision for them. Also, the decision of the mediator is non-binding between the parties when it unfeasible or impractical.

How does it differ from an actual Court Proceeding?

Arbitration differs from an actual Court Proceeding because the latter follows stricter rules on procedure and evidence; and more costly and time-consuming. Also, arbitrators are more specialized in technical matters involved in the dispute than judges.

How does it work?

Arbitration process is very much similar to court proceedings. Thus, it can be easily followed by Arbitration Lawyers.

It begins with setting parameters. The Arbiter shall require the parties to state the facts; and to produce the necessary documents in their favor. The parties, with the aid of their Arbitration lawyers, may use the rules of discovery based on their mutual arrangement. Also, the parties may agree on the terms on confidentiality of information; the evidence, as well as the issues to be presented.

Next is the Actual Arbitration Hearing. The arbiter shall ask each party to present to him or to the tribunal their documentary and testimonial evidence. The parties shall be given a chance to rebut or to cross-examine the evidence of the other side. They will also be given a chance to make their closing statements and conclusions.

The last process is the Arbitration Decision to be laid down by the Arbiter or Arbitral Tribunal after careful deliberation and examination of facts and arguments. The arbitration decision is final and executory.

What are the Advantages of Arbitration?

1. The issues involved in arbitration are usually more technical than those presented before ordinary courts. Hence, arbiters holding appropriate degree of expertise handle them.


2. It is often faster than court litigation.


3. It is less costly than court proceedings.


4. It is faster than court proceedings.


5. It involves limited issues.


6. Arbitral proceedings and awards are usually kept private.


7. Its awards are easier to enforce than court decisions because of specific arbitration laws and regulations.


8. It has usually limited avenues for appeal making the judgment final and executory.

What are the Disadvantages of Arbitration?

1. Consumers purchasing a product or Workers accepting work are usually not informed beforehand that they have already been forced into mandatory pre-dispute arbitration.


2. In mandatory pre-dispute arbitration, the parties must, in advance, waive their right to access judicial courts.


3. Parties pay for the Arbiters.


4. Attorneys' fees are usually not recovered.


5. Some Arbitrators are biased and rule in favor of the party who gives them more incentives. This usually happens on arbitration between employers and workers.


6. Erroneous decision cannot be questioned because of limited avenues for appeal.


7. More difficult to set hearing dates when there are multiple arbiters.


8. Arbitral awards have less enforcement remedies than court decisions.


9. Arbitrators are generally not allowed to enforce interlocutory measures.


10. Arbitrators are more likely to make decisions based on their personal ideas.


11. Bribery and prejudice is common

How can Arbitration Lawyers help me?

Arbitration lawyers can help you obtain a favorable judgment by following the required process of arbitration; making use of its advantages; as well as figuring out how to limit its disadvantages. If you are within Los Angeles, California and you need an Arbitration Lawyer, choose someone who has a high degree of expertise and experience on the topic subject to arbitration.

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