Arbitration is a common and respected form of alternative dispute resolution, and like mediation, requires an impartial, 3rd party known as an arbiter (or arbitrator) to listen to both sides of a dispute. In the past, arbitration has been used for securities, construction, and labor issues, but is now becoming more and more acceptable in all forms of business, product defect issues, and other legal dealings.

Arbitration is not the same as other forms of alternative dispute resolution. The arbiter, unlike the mediator, can and does make binding decisions after listening to both sides of a dispute. However, since the arbiter's decision can be final, consulting an attorney about arbitration is a smart step since decisions are extremely difficult to appeal.

Advantages of Arbitration

• Arbitration is often faster than litigation in court
• Arbitration can be cheaper and more flexible for businesses
• Arbitrators with an appropriate degree of expertise can be appointed to deal with highly technical or complex subject matters
• Arbitration proceedings and awards are generally not part of the public record like they are with litigation
• There are very limited avenues for appeal of an arbitration decision

Disadvantages of Arbitration

• Consumers or employees may not know in advance that they have agreed to binding arbitration by purchasing a product or taking a job, giving up the right to have a judge or jury decide the case
• The parties need to pay arbitrators, which adds an additional layer of legal cost
• Recovery of attorneys' fees is usually unavailable, making it difficult to get legal representation
• There are very limited avenues for appeal, and decisions cannot be overturned
• Arbitrators may be more likely to rule according to their personal ideals since rules of law are not binding
• Large corporations may exert inappropriate influence in consumer disputes, pressuring arbitrators to decide in their favor at the risk of future business

Arbitration can have the same seriousness as a court appearance, and you need an attorney working for you. Qualified litigation attorneys with arbitration experience can present your case and help you navigate complicated legal waters.