How many times have we heard the old stereotype that arbitration is faster, cheaper and litigation is preferable? Now, this may be true in some cases, but it's often better for a party to be legal. The determination depends on many factors. There are some companies that provide ADR services.
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1. Speed – Studies find a growing perception that arbitration is no faster, cheaper, and less reliable than litigation. In theory, there are many methods for speeding up arbitration, eg. B. only one arbitrator, not three; Limits on disclosure, witnesses, and accusations; bring the case to the brief; etc.
2. Costs – Settlement of $ 10 million disputes in the International Court of Arbitration using three arbitrators costs $ 397,367 in administrative and arbitration fees. Disputes with arbitrators of more than $ 5 million will cost $ 132,349. However, these figures do not include attorney and expert fees.
3. Consent – The parties are likely to be more satisfied with the arbitration if they agree to arbitrate after a dispute, than before, because their decisions will be broader and friendlier during the dispute. The disadvantage of the arbitration, however, is the possibility of a lack of consent from the third party concerned.
4. Confidentiality – Although disputing parties can often benefit from judicial confidentiality decisions, one of the main advantages of arbitration is its greater confidentiality because there are no public hearings or statements.
Experience of decision-makers It is often said that arbitration allows parties to select decision-makers who are more experienced than professionals in a particular technology. However, in less technical cases, it is less profitable. In addition, the legal and procedural skills and experience of judges should not be excluded.