No matter the legal dispute, in the heat of the moment it may be easy to consider suing another party and ironing everything out in the courtroom. Not only does going to court put you in the public eye, it is also an arduous and expensive process, filled with ongoing stress and the engulfing of enormous amounts of time and effort. If you are a business owner, a legal battle could take away significant hours and even days that should have been spent at the office instead.
Because of the well-known pitfalls associated with the courtroom, many parties in dispute today choose to resolve their differences through alternative dispute resolution. Although both mediation and judicial reference are popular forms of ADR, arbitration is commonly used to settle lawsuits out of the courtroom. For two businesses on equal footing that seek resolution through arbitration, the benefits are like mediation in that the expense is significantly less and the time spent in deciding the case is much shorter. This can be a much different story in some cases where arbitration is required though.
One of the most common examples of where arbitration turns into a very uneven process can be that of the consumer taking on a larger corporation to resolve a legal problem, or vice versa; for instance, your cell phone company may have a clause written into that contract you signed stating that any disputes must be decided in arbitration. Not only that, such dispute resolution clauses usually designate the location, meaning that you could be forced to drive a long distance to see everything settled.
A larger corporation will likely have experienced arbitrators on their side, and you may find that you are in anything but a neutral zone as you are forced to deal with an entity well-funded and with access to much greater resources than you have. Keep in mind that both their attorneys and arbitrators may have attended hundreds or even thousands of such proceedings—while it is your first time. Don’t go it alone if you feel like you are being forced into a challenging arbitration. Take time to examine all your options before moving forward.
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.