Few of us enjoy having a conflict of any sort, whether it is personal or business. It’s even worse when an issue continues to build, and develops into a full-blown legal problem. Even if you have never had a court battle behind you before, most likely a friend or relative has. Most of us know, or imagine, the courtroom as an intimidating venue and having to ‘go to court’ is usually fraught with stress, waiting, great expense, and an unknown outcome. Because of this, as well as the clogging of many courts due to so many lawsuits, arbitration has become extremely popular as a mode of alternative dispute resolution, along with mediation, and in California—judicial reference.
Although arbitration in California can be quite complex, the process can offer numerous benefits. An arbitrator is usually chosen by the parties involved, and there may even be several of them. If an arbitrator cannot be decided on by the parties involved, the court will usually appoint one. While a mediator is a neutral party who helps those involved reach a conclusion, the arbitrator may be a retired attorney or even a judge, and they have the power to render a decision, or ‘award,’ in the case that is usually considered binding. And while the process may be closer to a courtroom setting than that of mediation, the hope in using arbitration is that it will allow much greater expediency in reaching a conclusion. Unlike mediation, evidence can be admitted, and discovery is allowed.
In arbitration, the greatest benefit is often found for parties who are on equal footing. Many businesses who sign contracts upon working together will have dispute resolution clauses written in that specify not only whether they will use arbitration, litigation, or mediation if there is a problem, but they also spell out where such disputes will be settled and who will pay for any attorney’s fees, should they exist. In this case, the parties may be able to come to an agreement on a neutral arbitrator, and perhaps in as little as a few months. The process is private, as opposed to court processes that are public record; however, there is little chance for an appeal after the arbitrator gives their decision.
Arbitration has been getting more of a bad rap lately though as clauses are written into so many corporate and consumer contracts, often putting the other parties at a great disadvantage. The arbitrators involved may often not be as neutral as the side with less financial resources would like. Consumers may also be forced to drive long distances to arbitration. Sometimes known as forced arbitration, the process is being included in many employee agreements today too—and again, those on the ‘forced’ end of the process may feel like their options are very limited.
Attorney Shane Coons is highly skilled in all methods of ADR, to include mediation, arbitration, and California’s judicial reference system. If you have a legal issue and want to learn more about the best alternative dispute resolution process for your case, please call Shane Coons now at 949-333-0900 or email us at Shane.Coons@seclawoffices.com.