Why Use Arbitration Instead Of Going To Court ("litigation")?
By: LawInfo
The American Bar Association estimates that as many as 100 million Americans are shut out of the legal system due to the high cost of justice. In a 1999 survey, the National Center for State Courts found that only 32% of Americans believed they could afford to bring a case in court, and only 20% believed court cases were decided in a timely manner. According to the National Center for State Courts, 87% of those surveyed thought attorneys' fees added "a lot" to the cost of a legal suit.
On the other hand, many commentators and courts, including the United States Supreme Court, have found that arbitration is much less costly than litigation.
All of the available data show that consumers fare at least as well in arbitration as they do in the court system. This would suggest that there are no significant disadvantages to arbitration, in terms of outcomes. And researchers have found that individual parties receive more of what they ask for in arbitration than they do in court.
Arbitration does not limit a party's right to seek a specific solution, but simply shifts the venue for finding that solution from the court system to an arbitration forum. Arbitrators may grant any remedy or relief allowed by applicable law and available to them in court.
Arbitration, with its lower fees and faster process, is an ideal avenue for providing justice to Americans who cannot easily access the court system due to cost and delays.
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Additional Arbitration FAQs
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Q:
Are Companies Required To Inform Stockholders Of Their Involvement In A Lawsuit?
A: Companies are only required to report legal proceedings in their registration statement, quarterly report, and annual report. They do not have to make special reports … More -
Q:
What Is Arbitration?
A: Arbitration is referral of a dispute to one or more impartial persons (nonparties) for final and binding determination (resolution). When the decision is binding, … More -
Q:
What Is Mediation?
A: Mediation is negotiation carried out with the help of a trained facilitator. Two or more parties meet with a neutral third party, who guides the negotiation process … More -
Q:
Can I Get Information Concerning The SEC's Ongoing Investigation Of A Public Company?
A: The SEC has a policy of maintaining confidentiality about any details of its investigations until the cases are filed with the courts or a similar judicial body. This … More -
Q:
How Do We Get To Mediation?
A: The mediation process is usually voluntary the parties in a dispute come to an independent agreement to try to work things out with the help of a mediator. … More -
Q:
Is It Possible To Obtain The Results Of An Sec Investigation?
A: You can only find out which companies or individuals have been charged with an offense, and this information may be obtained from the Enforcement Actions Section of … More -
Q:
How Do You Apply For Arbitration?
A: Typically, to begin an arbitration, one party completes an arbitration claim form, files it with the arbitration administrator and pays and a filing fee, if any. The … More -
Q:
How Much Time Is Required To Schedule A Mediation?
A: Generally speaking, the parties themselves determine the scheduling of mediation, unlike in the court system where the "court docket" and relevant court rules define … More -
Q:
Is It Possible To Find Out If There Have Been Complaints Filed With The SEC About A Particular Company?
A: Yes, the Enforcement Actions Section of the SEC provides this information, and you can often get similar information by way of the Freedom of Information Act. More -
Q:
What Is "Med-Arb" And Why Use It?
A: "MedArb," short for "mediationarbitration," is a twostep dispute resolution process that borrows from both methods of dispute resolution. Parties … More
Alternative Dispute Resolution Sub-categories
| Collaborative Law | Mediation |
