For business owners, lawyers, or any person in a legal dispute, it is almost an undisputed fact that arbitration is perhaps the topmost option for dispute resolution, as it has several advantages over traditional litigation.
One needs to be well-versed with these advantages to effect fair decisions. So, let’s examine the top benefits of arbitration over traditional litigation.
Speed and Efficiency
One of the most critical benefits of arbitration is that it is both efficient and quick. Getting a case through the courts traditionally may last several years, mainly because the courts are overstretched and generally have lengthy procedural requirements.
In contrast, arbitration is usually conducted quite expeditiously. The parties can completely agree on a date for the process, and arbitration hearings are scheduled whenever all parties are out of the courts.
This efficiency not only saves time but also halves the stress and uncertainty that accompany prolonged legal battles. For businesses, this means that it enables them to come to quicker solutions where they can get back to business in the core activities without disturbances from pending cases.
Cost-Effective Solutions
Cost is substantial in a legal dispute. Traditional litigation also tends to be very expensive when attorney fees, court fees, and costs related to long-drawn juridical processes are taken into consideration. In general, arbitration is significantly more cost-efficient.
Arbitration eliminates many of the procedural formalities required in court, which lessens the amount of time the lawyers need to spend on the case. Also, since arbitration tends to be speedier, the overall legal fees are usually less.
When hiring arbitrator fees are available, they usually are less than the savings from other areas, so the net savings are still a result.
Flexibility in Process and Procedure
It allows for more flexibility in process and procedure when compared to traditional litigation. Litigants in a court are bound to follow a certain procedure and are bound by the timelines set in the procedural rules.
On the contrary, in arbitration, the parties can agree on any procedures that meet their needs. They could agree to the rules governing the arbitration, the place of arbitration, and even the arbitrator with certain expertise regarding their dispute.
This flexibility also extends to the evidence and how it is presented. Not as rigid as any court proceeding, most arbitrations follow much more flexible rules of evidence, and, therefore, the presentation of the facts is more direct. This process can be less formal and intimidate parties who are unfamiliar with legal procedures.
Confidentiality and Privacy
One of the significant advantages of arbitration is confidentiality. Court cases are generally conducted in public, and it is entirely possible that sensitive information can be disclosed during those proceedings.
This public nature of court cases might be considered deleterious by businesses, maintaining that certain disputes are better kept, much more so in cases with proprietary information and sensitive business practices.
Arbitration proceedings are private, and the details are kept confidential. This gives parties the freedom to solve disputes without facing the risks of exposure to the public, thus making it easy to maintain their reputation and protect sensitive information.
Expert Decision-Makers
In the case of arbitration, the parties can actively select their respective arbitrator or arbitrators. This itself is very often found very beneficial for the parties, for in so doing, they can either one, two, or a panel of arbitrators who are experts in the area under consideration.
For example, in the event of a complicated construction dispute, the parties could end up selecting an arbitrator with massive experience in construction law.
Better Decisions: This knowledge can lead to better, more rational decisions. The traditional litigation process often involves judges who are not particularly versed in the conflicted field.
One who is well-versed in the details, a decision-maker, can help reach a more fair conclusion in a relatively painless and quick way.
Preservation of Relationships
Unlike traditional litigation, which is adversarial, arbitration is more cooperative and less acrimonious. The process ultimately encourages joint efforts by the parties toward a mutually acceptable solution to the dispute.
Conclusion
Arbitration decisively outperforms the traditional dispute resolution system in terms of speed, cost, confidentiality, flexibility, expertise, preservation of relationships, enforceability, finality, and more.
With the knowledge of such benefits, parties can make informed choices based on the default view of existing dispute resolution methods. For many, it is the available practical and efficacious alternative to the courtroom, which affords them much quicker, more private, and oftentimes resolute outcomes.
