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The discussion topics below are provided only to give visitors a very general response to questions we frequently receive. As always, any discussion regarding legal topics and others that is posted online is no substitute for the advice of legal counsel, and Arbitrator.com highly recommends consultation with a qualified attorney on all legal issues. Please do not make any legal decision based upon the below questions and answers.

 

Q1: If I have a dispute with someone, how do I begin the arbitration process?

 

A: This is a question perhaps best suited for your attorney. However, sometimes businesses or individuals include in their contracts an arbitration agreement, or an "arbitration clause" that states that in the event of a dispute, the parties will resolve their dispute via arbitration. In other cases, two parties whose dispute might not be governed by an arbitration clause may nonetheless desire to arbitrate their dispute rather than litigate in the court system, for a variety of reasons.

 

Q2: Do some court systems have arbitration programs?

 

A: Yes. Many court systems require those parties to an action on their docket to arbitrate their dispute with either a court-designated arbitrator or an arbitrator of the parties' choice. Often this mechanism is found in courts where the amount in controversy does not exceed a certain amount. Note that more and more court systems are using arbitration to ease their docket overload.

 

Q3: How much does arbitration cost?

 

A: Assuming this is not court-administered arbitration, the fees of an arbitrator can vary dramatically based on a) the type of dispute involved, b) the amount in dispute, c) the geographic location, d) the experience of the arbitrator, e) the duties asked of the arbitrator (i.e., written opinion), and other factors. Most arbitrators' fees range from $150 per hour to $600 per hour, but fees below and above are not unheard of. If one's dispute involves millions of dollars, the prevailing wisdom is to retain an arbitrator who understands the subject matter, without much consideration as to that arbitrator's fees.

 

Q4: Must you be an attorney to be an arbitrator?

 

A: This is a difficult question. Most often the answer is no. Theoretically, the biggest challenge for someone trying to get into the arbitration field is simply convincing parties that you are qualified and wise enough for them to entrust their dispute to you for a fair determination. Many if not most arbitrators are in fact attorneys, however a significant portion are not. They may be architects, contractors, businesspeople, engineers, etc. Some jurisdictions, however, do require arbitrators to be attorneys, but that discussion is beyond the scope of this page. Perhaps the best course of action is for prospective arbitrators to contact the state bar association of the state in question and pose the inquiry to them.

 

Q5: How is mediation different from arbitration?

 

A: Arbitration is generally discussed in terms of binding arbitration, whereby the parties agree to abide by the arbitrator's decision. The arbitration therefore takes on a judge's role. In mediation, a mediator seeks to get the parties to resolve their dispute via negotiation and agreement between themselves, rather than a decision by a third party?

 

Q6: Is arbitration cheaper than going to court?

 

A: Answers to this question vary greatly in the legal world. Many people think arbitration is always cheaper because discovery is usually less intensive, their are fewer motions, etc. However, many attorneys think that arbitration moves just as slow as ordinary litigation does.