Arbitration is a private dispute resolution process in which parties agree to resolve their claims before an arbitrator as part of a more informal process than litigating a matter in court. Parties in New York and other states should be aware of several important differences between arbitration and litigation.
Arbitration typically involves streamlined procedures that usually allow more evidence to be presented in a dispute than would be allowed in court. In addition, documents that are filed as part of the arbitration process are often more concise than materials that may be submitted to a court. An experienced contract dispute lawyer may help a client understand the procedures of arbitration.
Arbitration often takes far less time to resolve than litigation. This is because parties are often given shorter time frames to exchange documents and to schedule a hearing to resolve a matter during arbitration. As a result, all parties wishing to resolve a dispute quickly should consider submitting a case to arbitration.
Arbitration is often a more private process than litigation. This is because documents submitted as part of an arbitration proceeding often do not become pubic in the same way as many documents filed in connection with litigation. As a result, parties who wish to keep the details of their dispute private might try to have a matter resolved through arbitration.
Parties typically only need to pay a modest fee in order to file a lawsuit. However, parties usually need to pay higher fees for arbitration. This is because arbitration is paid for by the parties whereas taxpayers help pay for the cost of the judicial system. As a result, parties who do not wish to pay higher costs to file a case might choose litigation. An experienced lawyer should be consulted to determine the best possible strategy for a particular client.