Arbitration FAQ

What is arbitration?

Why use arbitration over litigation?

What types of disputes can be arbitrated?

Who serves as an arbitrator to resolve a dispute?

Arbitration News

National Arbitration Forum Report:
Studies Compare Arbitration and Litigation

Overview

Studies comparing arbitration and litigation reveal that arbitration is fair to individuals and businesses. Arbitration is cost-effective and reduces the time needed to resolve disputes.

Traditionally, if individuals or businesses could not resolve a conflict through negotiation or mediation, it was necessary to file a legal claim. Filing a legal claim was viewed as a difficult process because it took time to prepare the claim to be filed and to secure witnesses and documents. In addition, significant expenses were incurred for filing fees, discovery costs, and attorneys’ fees.

Today, parties to a dispute can use arbitration to avoid the expenses and headaches of traditional litigation. The decision to use arbitration may be the result of a private agreement between the parties, a requirement of state or federal law, or an order by a court.

This site addresses frequently asked questions about arbitration and offers links to sources compiled by the National Arbitration Forum to compare arbitration to litigation. The links provide empirical support for individuals and businesses to use arbitration to solve problems.

Arbitration: Simpler, Cheaper, and Faster Than Litigation:
Survey by Harris Interactive conduced for the U.S. Chamber of Commerce Institute for Legal Reform found wide satisfaction among individuals who chose arbitration over litigation to resolve a dispute.

Outcomes of Arbitration. An Empirical Study of Consumer Lending Cases
An Empirical Study on consumer lending cases conducted by Ernst & Young, entitled Outcomes of Arbitration confirmed that consumers found the arbitration process to be beneficial in resolving legal claims, and that reports that consumers are disadvantaged by contractual arbitration are clearly erroneous.