Arbitration is when two parties seek a third party to hear and mediate their dispute. This is done outside of a court and without a judge. Although, it is worthy to note that courts can order the parties to attend arbitration to try and settle their dispute. It is a preferred method for parties who desire swift resolution of their dispute.
Arbitration should always occur under the supervision of each party’s legal counsel to guarantee that the arbitration is correctly handled and that both parties are fairly represented in the settlement. Arbitration is less expensive than going through a formal court hearing. It is quicker and private. Decisions cannot be reviewed in court or appealed. Arbitration is binding so it is important that people involved in arbitration are truly happy with the decision made because they cannot appeal it.
Many purchase contracts for vehicles from a dealer and even most cell phone contracts have an arbitration clause within them that states the parties must attend arbitration if there is a dispute.
If you’re going to attend either a mandatory or a voluntary arbitration session, you should immediately consult with an attorney to learn about your rights. This is exceptionally important because arbitration is binding. So, getting a decision from an arbitrator could mean that you don’t get what you deserve. This is why talking with a personal injury attorney is so important.