Arbitration FAQ

What is arbitration?

Arbitration is an alternative to traditional court litigation. Arbitration is a streamlined private legal procedure used to resolve disputes between two or more parties. An arbitration proceeding is administered and managed by a knowledgeable, independent, and impartial third party. The parties to a dispute present their arguments and evidence to the arbitrator who decides the case and resolves the dispute.

Why use arbitration over litigation?

Arbitration is encouraged over traditional court litigation because arbitration is generally less expensive than litigation and provides for faster resolution through flexible scheduling and simpler rules. In addition, arbitration results are only made public with the consent of the parties involved in the dispute. This differs from traditional court litigation in that courts are public forums and information about business and personal affairs may become public knowledge. Arbitration helps to protect privacy and increases the chance of reaching an agreement that will satisfy all of the parties to the dispute.

What types of disputes can be arbitrated?

Virtually any type of dispute can be arbitrated, including contract disputes involving businesses and consumers, domain name disputes, employment claims, real estate and construction issues, and tort and civil rights matters.

Who serves as an arbitrator to resolve a dispute?

An arbitrator is an independent person who is selected either by the parties to the dispute or a designated arbitration administrator, such as the National Arbitration Forum, to resolve the conflict. The arbitrator takes the place of a judge and jury and listens to the facts presented by the parties, applies the relevant law, and makes an award. Individuals who serve as arbitrators typically possess certain qualifications or minimum levels of experience to maintain the integrity of the arbitration process.