January 08, 2019


The Arbitration Committee of the American Bar Association Section of Dispute Resolution published an article outlining the benefits of arbitrating as opposed to litigating commercial disputes. The ABA outlined the benefits as follows:

  1. Arbitration allows for better party control. Critical aspects of the arbitration processes: e., the scope and nature of discovery, the length of the arbitration process, the manner in with the arbitrator may be selected etc… can all be determined by the parties at the contractual stage of the underlying commercial transaction or even after the arbitration has commenced.
  2. Length of Time. According to the American Arbitration Association, from the time of filing an arbitration demand to the final award, commercial cases were completed in 7.9 months. In contrast, civil litigation cases averaged 33.2 months from date of filing to finality.
  3. Expenses are far less in Arbitration as opposed to litigation. Attorney fees and expenses are proportional to the time it takes to resolve a case.  Given the shorter duration of arbitration, expenses are significantly minimized as opposed to litigation costs.
  4. Flexible Process. Arbitration fosters an informal atmosphere.  Often in arbitration, hearings and deadlines are set to satisfy parties’ objectives and convenience.  Additionally the informal nature of arbitration fortuitously serves to reduce stress on witnesses and helps preserve the continuing business relationship between the parties.
  5. Confidentiality.  Arbitration hearings are held in private settings as opposed to public trial proceedings.  The confidentiality of the arbitration proceeding can be agreed to among the parties and this is critically important when dealing with intellectual property, trade secrets and other damaging information.
  6. Arbitration Selection. Parties have the benefit of selecting their own arbitrators.  In this instance parties can agree to arbitrators with specific expertise, competence and other desirable qualifications.
  7. International Commercial Disputes.In the international context, arbitration may sometimes be the only possible neutral forum for dispute resolution.Additionally the New York Convention to which the vast majority of nations are party to, enables the enforcement of arbitration agreements and awards across boards, making enforceability of the award a non-issue.

If you have a pending commercial dispute, we invite you to call us today at 619-432-5145 for a free consultation with one of our experienced arbitration attorneys.

1 Comment

  1. Arbitration for commercial and industrial sectors is important if you’re facing issues. Thanks for the insightful post.

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