Arbitration AdvantageAugust 1, 2009 – In The News
For companies facing lawsuits, arbitration is not only a pathway to keep the dispute out of court but it also helps avoid a costly and lengthy trial, unpredictable jurors and the specter of ongoing appeals. It also offers finality since in most cases, a verdict is binding. Critical to understanding the arbitration process is knowing what arbitration is not, however.
In the article "Arbitration Advantage," published by New Jersey Business, John Grossman notes that "If parties that have selected arbitration in an agreement don't really understand what arbitration is all about, and by that I mean not only the benefits, but the limitations of it, then those parties are not going to be best served and they are only going to interfere with the process because they will want what they are used to having in court." John states that companies that are able to resolve disputes by themselves or through mediation or arbitration are at an advantage, but companies that want their "day in court" often find themselves disenchanted with alternative avenues of dispute resolution.