Arbitration is a more formal alternative dispute resolution (ADR) methodology. Our neutral arbitrator, also known as a “private judge”, takes documentation, witness statements, hears evidence and makes an award based of this information. These hearings are conducted in a private confidential setting and a final award will be issued.
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Arbitration
A hearing is normally held with one (1) arbitrator but in larger cases it is common to use a panel of 3 or 5 arbitrators. This does affect the cost of the arbitration significantly. Arbitrators do NOT need to be attorneys and many arbitrators are experts in their field. Trained is needed to be an arbitrator as their are very critical, specific considerations and ethics.
Arbitration can be held with or without attorney representation and some parties will choose a non-attorney representative (NAR) as the process is greatly simplified and not as rigid as court. Whether you, an attorney or a NAR presents your case; decisions are based on evidence not rule of law.
As the process may seem daunting, it is not complicated. We will walk you through the process and explain everything you need know.
How Does Arbitration Work
If you have ever watched “Judge Judy” or “The Verdict” on TV, you have seen an arbitration with single arbitrator or a panel of three arbitrators, except we don’t wear black robes.
Each party presents their case, evidence and witnesses to the arbitrator. In arbitration, a site inspection may be allowed to fully understand the case.
Once all information has been heard, the arbitrator will adjourn (end the hearing) and an award (the decision) will be sent to the parties.
Typically there are few to no appeals on an arbitration award. The only appeals are for bias, conflict of interest and for arbitrators who exceed their authority.
Types of Arbitration Hearings
Guidelines and Rule Sets
In Arbitration you have to have rules and guidelines. These were created in the contract, normally, and gives you boundaries in which arbitration will be held. These tell you the limits, timelines, number of witnesses, etc. Send us your contract and we can help you identify your arbitration process.
Ad-HOC – simply means the contract or arbitration clause did not specify the details. You and all other parties will decide the rules in the pre-hearing conference.
Established – Everything or most everything is spelled out in the contract. This will be the rules and guidelines and everything else will be decided by the parties in the pre-hearing conference.
Formalized – This means your contract or the parties have selected a set of formalized rules and guidelines, such as the AAA, JAMS, FAA, CCA or PADR.
Format of Arbitration
Arbitration allows for customization, if it is not spelled out in your contract or the parties all agree to change the rules. Arbitration can allow for different options making the process more beneficial than court litigation.
Binding (BA) – Binding and final. The award can be taken to a court of law, affirmed and uphold like a court judgement.
Non-Binding (NB) – Not enforceable and used as a gentlemen’s agreement where parties agree to honor the decision.
Early Neutral Evaluation (ENE) – This is used as a reality check. The neutral gives their professional opinion to the case and the amount of the award. This hearing happens early in the case process to help push toward settlement especially when the amount sought is greater then the reasonable award or judgement.
Moderated Settlement Conference (MSC) – This is the ONLY case format where the victor is already known. Commonly used in insurance and damage settlements where the dispute is over the amount of the payout.
Med/Arb (MA) – This is a hybrid method where the parties take the dispute first to mediation; then any unresolved matters go directly to arbitration for a final award.
Arb/Med (AM) – This is a hybrid method where the parties take selected parts of the dispute to arbitration; then the remaining matters go to mediation after the award. This limits the amount of decisions needed in mediation and settles more difficult issues.
Options in Arbitration
The most robust functions of arbitration is the options. Unlike court litigation, arbitration hearings are held in a conference room or on your site; can use video conferencing, can include site visits, can be held in difference cities or states, can allow for witness affidavits or hearsay and can allow you to select the number of arbitrators hearing your case.
Onsite Arbitration Visit/Inspection
Video Arbitration Hearing. This can be a complete video hearing, partial (pictured) or for witnesses who are out-of-town.
Types of Awards
Allowing for different types of awards allows for a more simplified or more complex decision. Why have an arbitrator spend hours building case law and judicial opinion when it is not needed.?
Standard Award – Simplest and least complicated. A basic statement of the facts of the case with information and the final award.
Reasoned Award – List of facts and reasons for the award decision. This holds more detail and explains how information affected the final award.
FFCL Award – Finding of Facts and Conclusions of Law – Very comprehensive and detailed as to the facts of the case, how they relate to the law and what the law says about these facts as presented.
Are you Ready
Open an Arbitration today by simply clicking the button below and filling out our initiation form. We will contact everyone involved and get a virtual or in-person arbitration process started.
Let us Walk You through the Arbitration Process
Give me a call 405-765-8030 or send us a message through the form below. One of our experienced arbitration specialists will contact you and to help.
