Arbitration
What is arbitration?
Arbitration is an alternative dispute resolution mechanism, wherein parties present evidence typical to a mini trial. The arbitration sits as a judge, however, in a more relaxed and informal atmosphere.
Typically, the Rules of Evidence do not apply in arbitration and documents may be submitted in a more informal fashion. Often the parties will be allowed to present hearsay testimony and testimony through Affidavits.
Why arbitrate?
Arbitration is an informal and efficient way of resolving individual disputes on a case-by-case basis. It differs from mediation in that the arbitration process is directed by the arbitrator and the issue is not resolved by the parties, but resolved by the arbitrator in a decision making process.
What is the arbitration process?
The arbitration process, similar to the mediation process, is begun by meeting together with the arbitrator in a joint session. Attorneys generally represent the parties, although it is not required. The parties are allowed to make opening statements and then present their evidence and witnesses. Witnesses are subject to cross-examination by the opposing party. Once all of the evidence is introduced, closing arguments are made and the arbitrator renders a decision. A decision may be enforced in court, depending on whether the parties agree to binding or non-binding arbitration. Binding arbitration means that the result rendered by the arbitrator is final and subject to enforcement. Non-binding arbitration is advisory and generally is not a basis for confirming one position or another in subsequent litigation.
What are the costs for arbitration?
Costs for arbitration is $150.00 an hour or $1,000 for an entire day. It is required that the parties make a deposit of at least one-half of the amount for the scheduled time. Depending on the agreement of the parties to arbitrate, the parties may evenly divide the fees, or allow the arbitrator to award fees to one side or the other.
If you have any questions, or wish to schedule mediation services, please contact Thomas J. Dolina, Esquire.