Arbitration Laws Overview


Summary

This practice note provides an overview of the laws applicable to arbitration in the United States. Parties to an agreement may wish for binding arbitration to apply instead of litigation if a dispute occurs. An arbitral proceeding is far more private and less formal than a trial. It often provides a less expensive and quicker resolution of a dispute, particularly since there is no jury and the results are subject to very limited rights of review and appeal. Additionally, the schedule for the completion of discovery and trial is far more compressed than with litigation, allowing for significant cost savings. While lawsuits can take close to a year or longer to resolve, arbitration can take place in a little as 30 to 60 days. Arbitration also allows for a more expansive introduction of evidence since there are far less exclusionary rules. In other words, the arbitrator may allow more evidence, testimony, and documents to be considered than a judge would allow in a court room or in front...