Arbitration Woodland Hills
What is Arbitration?
Arbitration is when two parties join together to appoint a third-party judge, in which the third party judge will impose a solution on the issue. The end result of the arbitration may be binding or non-binding. A binding decision is when both parties must abide by the ruling, while non-binding is when parties can choose to ignore the ruling. A non-binding ruling can be seen like mediation, in the sense that the ruling can’t be imposed upon the parties.
Participation in arbitration can be voluntary or mandatory, although mandatory arbitration can only come about from means imposed by a contract that was voluntarily accepted prior. Arbitration occurs one of two ways, disputes caused by prior agreements that are resolved by arbitration or agreements made after disputes arise stating that the dispute should be faced with the arbitration.
Why some may prefer arbitration?
Arbitration tends to be favoured among the other techniques of ADR for various reasons. For one both parties can pick their third-party judge while in standard litigations, the judge is appointed for you. This is highly favourable due to the fact that you can fit a third party judge that is more fitted for the issue. Unlike standard litigations in court, depending on the length of the case arbitration can be much quicker and confidential. Due to the fact that there are limited avenues for the appeal of arbitration, it limits the duration of the disputes and the liabilities associated with such.
Before deciding that arbitration is the appropriate selection of ADR, there are certain drawbacks of arbitration to think about. If the ruling is both mandatory and binding, both parties would then have waived their rights to access the courts, meaning they would lose the opportunity to have their case be valued by a judge and jury. Since there are limited avenues for appeals of arbitration, in an off chance that there are inaccurate rulings, rulings/decisions cannot be easily overturned.