Part 1: Introduction to Arbitration: What It Is and Why It Matters
Understanding Arbitration Arbitration is a form of alternative dispute resolution (ADR) that has gained significant traction over the years, particularly in the construction industry. Unlike traditional litigation, which involves going to court, arbitration allows parties to resolve their disputes privately and often more efficiently. The process involves a neutral third party, known as an arbitrator, who listens to both sides and makes a binding decision. Key Differences Between Arbitration and Civil Litigation in the Courts One of the primary distinctions between litigation in arbitration and litigation in the courts is the setting. Arbitration is typically conducted in a private setting, which can be more conducive to open communication and quicker determinations. In contrast, litigation in the courts is a public process that takes place in courtrooms and often involves extremely detailed and lengthy procedures. Court litigation can take substantially longer to get to an end result, requiring each of the parties to jump through more hoops in the process, driving up the attorney’s fees incurred by all involved. Another notable difference is the flexibility of arbitration. Parties involved in arbitration can choose their arbitrator, set their schedules, and define the framework that will govern the proceedings. This level of control