What Are The Advantages And Disadvantages Of Arbitration?

One of the potential advantages to arbitration is it can be quicker than proceeding through a court. Another advantage that employers often prefer is that there typically is not a public record of an arbitration. Unlike lawsuits, where there is public information available, there is not any kind of database or resources where someone can go and see what decisions have been determined by arbitrators.

One of the disadvantages of arbitration is that it is not a free resource. Last year, we had an arbitration that went all the way through trial and it costs the parties, collectively, over $60,000 just for the arbitrator’s fees and the arbitration association fees. Unlike a court case, in which you pay a nominal filing fee, in arbitration, you’re going to pay an association and the arbitrator, in addition to your own legal fees. Another disadvantage is that appealing a bad arbitration decision is very limited.

Can Some Points Be Negotiated When Signing An Arbitration Agreement With An Employer?

Some points in an arbitration agreement can be negotiated, such as where the arbitration is going to take place. If you work for a company that has several different locations, you are going to want to have the arbitration proceeding take place wherever you live. Another point to consider is who is going to pay for the arbitrator and the arbitration association. In many employment situations, that ends up being the employer. Another factor is what’s going to happen to the attorney’s fees that you might incur if you prevail in that arbitration. If you’re the prevailing party, you should receive your attorney’s fees as a result.

How Is An Arbitrator Chosen? Do We Have Any Say In The Matter?

After someone files a claim with arbitration, the arbitration association will distribute the names and resumes of 7 to 10 possible arbitrators. You can go out and do your own due diligence on each of those individuals. Each of the parties then ranks the individual arbitrators and may also have the option of striking out some of them. Then, the association compiles a list from both sides and chooses someone from that list.

Who Is Going To Pay For Arbitration?

In most employment contexts, it will be the employer who pays for arbitration but you want to make sure that the language is specifically laid out in your arbitration agreement to ensure that that is the case.

Can I Sue An Employer For Discrimination If I Have Signed An Arbitration Agreement?

If an employee files a lawsuit in court, the employer, if they believe that the claim was covered by the arbitration agreement, could then file a motion with the court seeking to have the dispute resolved by arbitration. If the court agrees, the case would then proceed to arbitration.

What Happens After Arbitration?

If a plaintiff wins money at arbitration, they have to go to court and have the arbitration award confirmed. That is a point at which the defendant could challenge the arbitration award and ask that the court either modify it or vacate it. There are only very limited circumstances under which that will be considered. In most situations, there has to be some kind of fraud, bias, or other misconduct by the arbitrator.

Can An Arbitrator Award Not Only Monetary Damages But Injunctive Relief?

An arbitrator has the authority to award both monetary damages and injunctive relief. If the arbitrator imposes injunctive relief, you still have to go to court to enforce that injunction. That way, if there is a violation of the injunction, there is a court that the violating party will be held responsible to.

For more information on Advantages & Disadvantages Of Arbitration, a case evaluation is your next best step. Get the information and legal answers you are seeking by calling (281) 277-3066 today.