Arbitration: Is It Too Late To Arbitrate?
If you are considering arbitration to settle a dispute, you may wonder if it is too late to arbitrate. The answer to this question depends on your case’s specific situation and facts. Although there are some time limits that apply, generally speaking, it is not too late to arbitrate as long as both parties are willing to participate in the process.
What Is Arbitration?
Arbitration is a process whereby two parties agree to resolve their dispute by an impartial third party known as an arbitrator. The arbitrator will listen to both sides of the story and then render a decision that is binding on both parties. Unlike mediation, which is often used to reach a settlement agreement between the parties, arbitration results in a binding decision that cannot be appealed.
Time Limits for Arbitration
There are some time limits that apply to arbitration. For example, if you have already filed a lawsuit in court, it may be too late to arbitrate because the court may have exclusive jurisdiction over the matter. Similarly, if you have already entered into a written contract that provides for arbitration, there may be a time limit set forth in the contract for commencing arbitration. However, these time limits can usually be waived if both parties agree.
Benefits of Arbitration
Arbitration can be a faster and cheaper way to resolve a dispute than going to court. In addition, arbitration is often less formal than litigation and can be conducted without attorneys. As such, it can be less intimidating for some people. Finally, arbitration offers flexibility in terms of scheduling and location.
Frequently Asked Questions (FAQs)
What are 2 disadvantages of arbitration?
The disadvantages of arbitration include are the potential for high costs if the parties hire attorneys or arbitrators with specialized knowledge; and the fact that arbitration is binding, meaning that the parties cannot appeal the arbitrator’s decision.
When should you start arbitration?
There is no definitive answer to this question. It depends on the specific situation and facts of your case. However, it is generally advisable to start the arbitration process as soon as possible after a dispute arises in order to avoid the possibility of any time limits that may apply.
What are the correct disadvantages of arbitration is?
The disadvantages of arbitration mentioned in this article are the potential for high costs if the parties hire attorneys or arbitrators with specialized knowledge; and the fact that arbitration is binding, meaning that the parties cannot appeal the arbitrator’s decision.
Is arbitration quicker and cheaper?
Yes, arbitration can be a faster and cheaper way to resolve a dispute than going to court. In addition, arbitration is often less formal than litigation and can be conducted without attorneys. As such, it can be less intimidating for some people. Finally, arbitration offers flexibility in terms of scheduling and location.
Conclusion
If you are thinking about using arbitration to resolve a dispute, it is important to understand the process and the applicable time limits. Although there are some time limits that apply, generally speaking, it is not too late to arbitrate as long as both parties are willing to participate in the process. Arbitration can be a faster and cheaper way to resolve a dispute than going to court and offers flexibility in terms of scheduling and location.
