The American Arbitration Association (AAA) is an organization that doesn’t make a profit, but offers an alternative way of handling dispute resolution. It offers services to both organizations and individuals who are eager to resolve conflicts without having to go to court.
The AAA is one of a number of arbitration organizations that organizes arbitration proceedings. If you have a dispute regarding a personal injury claim you want resolved but don’t won’t to go to court, you should talk to a lawyer before taking on this difficult task on your own.
The Cost of AAA Arbitration
A filing fee will need to be paid to begin with. This is calculated depending on the size of the case. The scale begins at $50 for cases which are under $1,000, and increases after that. A case of $50,000 to $100,000 may cost $975 to file.
Whatever rate you are given is typically the cost of full arbitration. Normally, each party pays half of the total cost of the fees unless another agreement has been reached.
What are the Benefits of Arbitration?
- Arbitration is typically quicker than going through litigation in court,
- A time limit may be put on the arbitration process.
- Arbitration could be less expensive and more flexible,
- The process is bound by confidentiality requirements.
Because litigation involves resolving issues at a court, a judge or jury may be present, which can be more intimidating than arbitration. Arbitration differs in that it involves two parties who are in dispute but who agree to work with a third party as a way of resolving the dispute.
An arbitration award, despite not taking place in court, is still legally binding for both parties and can be enforced by a court. Arbitration uses the services of an impartial adjudicator who makes a decision for the parties involved in the dispute which is both final and binding.
How Long Is an Arbitrator Likely to Take to Reach a Decision?
Oral hearings, concerned with particularly big claims, involve several parties and complex issues could take up to 15 months to complete from the opening of the case. The arbitrators are required to make a decision called an award within 30 days following the conclusion of the arbitration.
Do You Need a Lawyer For Arbitration?
The final decision the arbitrator makes is confidential, unless one of the parties finds the decision needs to be enforced in court. Even though it’s not a requirement that you involve your lawyer, arbitrations don’t usually begin unless each party has a lawyer present.
This will attract a fee over and above the filing fee, but because the court isn’t involved it’s a far cheaper way of resolving a dispute. Most parties take on the services of a lawyer as they think that there is a better chance that the dispute will be resolved quickly, saving both time and money over going through litigation in court. To speak with an attorney, complete the Free Case Evaluation on this page.