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Why Use Arbitration Instead Of Going To Court ("litigation")?

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.

Other Arbitration FAQs

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: 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: 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
Q: Are There Different Forms Of Arbitration? What Are The Differences?
A: Arbitration can be either binding or nonbinding. Binding arbitration is final and generally the outcome cannot be appealed. Nonbinding arbitration is … More
Q: How Does The Arbitration Process Generally Work?
A: The arbitrator initiates the hearing by swearing in the parties and witnesses who will testify. The parties then give opening arguments and present both documentary … More
Q: Are The Arbitration Proceedings Completely Confidential?
A: Arbitration hearings, unlike trials, are not open to the public. Everything discussed is done so in private and, in the context of the hearing, is confidential. Any … More
Q: How Is The Arbitrator Selected For The Proceeding?
A: Under the rules of the American Arbitration Association, arbitrators are selected by having each side strike (remove) any unacceptable arbitrators from a list of … More
Q: What Is The Aaa?
A: The American Arbitration Association is a private, nonprofit organization that provides guidance and rules for parties to follow in private arbitrations. It also … More
Q: Can You Choose Your Own Arbitrator Instead Of Going To The Aaa?
A: Parties who choose to find their own arbitrator rather than using the services of organizations like the AAA or the National Academy of Arbitration (NAA) can use … More

Alternative Dispute Resolution Sub-categories

Mediation