If you have a problem that cannot be resolved by talking to the other side, too many people believe the only solution is filing a lawsuit. Of course, going to court is better than settling cases the way it was done in Tombstone, Arizona in Wyatt Earp's day but today there are more reasonable options to consider, such as Mediation or Arbitration.
Mediation is a method in which the parties agree upon a neutral Mediator who will listen to both sides and suggest a resolution. Generally, Mediators are lawyers who have training in settling disputes and can explain why an agreed settlement is often the best available option. Mediators do not have authority to require a settlement, they can only counsel, advise and recommend what they believe to be a workable settlement.
Arbitration is also a process in which the parties agree upon a neutral person to serve as the Arbitrator of their dispute though Arbitrators do have authority to decide the case and to enter an order that is binding on all sides. Arbitrators are typically lawyers who have training and experience in Court trials, Mediation and Arbitration.
Arbitration is like a court trial, but held in the office of the Arbitrator. The parties give sworn testimony under oath and introduce documents or other exhibits at an Arbitration hearing. After the hearing is over, the Arbitrator will review all of the evidence received at the hearing and make a decision. This decision is as binding on the parties as if it had been ordered in Court by a Judge. The advantages of Arbitration over Court trials include:
1. The decision is much faster than a Court trial because Arbitrations are frequently held soon after the matter is filed, whereas, Court trials can take one or two years to get to a hearing.
2. There is no appeal from an Arbitration Award while a Court decision can be appealed and take another year or two to be decided. If the case is overturned by the Court of Appeals, it can go back for another trial and even another appeal.
3. Although the Arbitrator has to be paid by the parties, the overall cost is generally less than Court because of the lengthier process.
4. Both parties get back to their businesses sooner as opposed to being frequently interrupted by court hearings over a long period of time. |