Arbitration is an out-of-court method for resolving a dispute between a worker and an employer . Arbitration takes place in front of a neutral decision-maker called an “arbitrator” (or in some cases, a group or “panel” of arbitrators) who will listen to each side and make a decision about the case.
What is the purpose of arbitration?
Arbitration is a method of resolving disputes without going to court . Sometimes an attorney will recommend arbitration to a client as the best means to resolve a claim. In arbitration, the dispute is submitted to a third party (the arbitrator) who resolves the dispute after hearing a presentation by both parties.
What is an example of arbitration?
An arbitration award is the award of damages to a party in the arbitrator’s decision. ... Examples of remedies that may be awarded by an arbitrator include: The payment of a specific sum of money , called “conventional damages” An order for a party to the proceeding to do or not do something, called “injunctive relief”
What is arbitration process?
Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute . In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.
What happens when you go to arbitration?
the Arbitrator contacts the parties directly to notify them of his or her jurisdiction to resolve the dispute and arranges a time to conduct a Hearing . ... The parties may call witnesses and/or seek legal representation. • the Arbitrator adjourns the Hearing to consider the facts and evidence presented by the parties.
Who chooses arbitrator?
Arbitrators are qualified professionals who act as neutral decision-makers during arbitration. Arbitrators may be former judges, current or former attorneys, non-lawyers, and may specialize in certain areas such as employment law. Typically, the arbitrator is mutually chosen by the worker and the employer .
What cases are heard in arbitration?
Arbitrators hear various types of cases, from small disputes between neighbors to million-dollar business conflicts . Unlike mediation, which is less effective in cases where questions of law represent the key elements of the dispute, arbitration is often used for complex legal disputes.
What are disadvantages of arbitration?
There are also some disadvantages of arbitration to consider: No Appeals : The arbitration decision is final. There is no formal appeals process available. ... Limited Discovery: In the event that arbitration is not filed until litigation has already begun, both parties lose the cost-saving advantage of limited discovery.
Do I need a lawyer for arbitration?
The short answer is no, you do not need a lawyer in arbitration . However, because the dispute resolution process is adversarial in nature, and the outcome is often final and affects your rights, you may want a lawyer’s help in preparing and presenting your case.
What happens if you lose in arbitration?
Binding arbitration is usually final. ... If the losing party to a binding arbitration doesn’t pay the money required by an arbitration award, the winner can easily convert the award into a court judgment that can be enforced just like any other court judgment.
What is the first step in the arbitration process?
There are five main stages to the arbitration process: (i) initial pleadings ; (ii) panel selection; (iii) scheduling; (iv) discovery; (v) trial prep; and (vi) final hearing.
What happens after you win arbitration?
Once the arbitrator decides that all of the parties’ evidence and arguments have been presented , the arbitrator will close the hearings. ... Instead, if a party wins in the arbitration and the other party does not do what the award says, the winning party may go to court to “confirm” the arbitration award.
How do I start arbitration process?
The arbitration process usually starts with the complaining party giving notice to the other about their intent to arbitrate a dispute . The notice includes the nature and basis for the proceeding. Following this notice the other party has a period of time to file a written response.
What are the rules of arbitration?
“Law of the Arbitration” means the law the Parties have chosen to apply to the arbitration proceedings or, in the absence of such a choice, the arbitration law of the place where the arbitration is held. “Notice of Arbitration” means the notice referred to in Rule 4.1.
What happens if I don’t respond to arbitration?
In the event that a party fails to appear at the arbitration, the arbitration must still proceed . ... Unless the law provides to the contrary, the arbitration may proceed in the absence of any party or representative who, after due notice, fails to be present or fails to obtain a postponement.
How long does an arbitrator have to make a decision?
You can usually expect to hear the arbitrator’s decision within 45 days of the arbitrator closing the proceedings. However, this timescale is usually set by agreement between you, the other party and the arbitrator.
