Arbitration Article

One form of an alternative dispute resolution, or ADR is a form of legal proceedings that is used to find a resolution to a dispute outside of the courtroom. In an arbitration hearing, the arbitrator, a court official appointed by parties or the court itself to oversee the hearing, each party entered into the dispute presents their facts, after which the arbitrator will make a final and legally binding decision. Arbitration in the US can be elected voluntarily or mandatory. However, mandatory arbitration is still voluntarily agreed up in a prior contract clause. This is often seen in in corporate clauses with customers and employees. An example of this could occur if for instance a customer of Verizon Wireless has a dispute arise with the phone company, their claims would be taken to arbitration according the legal contract you sign when you agree to phone services.

The problem many Americans see with these arbitration clauses is that they feel they have waived their rights to take any claims to court. There are disadvantages to mandatory arbitration that is worrisome to those parties entered into such agreements. One such factor of arbitration is the high cost associated with this form of alternative dispute resolution. To file for a case, the defendants must pay a filing fee that can usually exceed the $750 marker. Along side this fee, the arbitrator(s) will also charge an hour fee for his or her services. Another big issue for defendants is from the limited privilege of the defendant to obtain evidence from corporations. No subpoenas can be ordered in arbitration which prevent defendants from supporting their case. The biggest argument against arbitration is the fact that it is legally binding. Unlike small claims court, there is limited judicial review in arbitration. Unless there is fraud involved, a court is not required to review an arbitration hearing, and often times even if both parties agree to judicial review, the court will not agree to hearing...