Arbitration is an alternative dispute resolution (ADR) process – a different option from full-blown litigation. When compared to filing a lawsuit, arbitration is:
- Less expensive
- Less stressful
- Less formal
- More private
- Quicker
This often makes arbitration ideal for business disputes between companies that want to resolve a legal issue as quickly and cheaply as possible.
The arbitration and mediation attorneys at the Katz Law Group have more than 40 years of experience helping clients succeed in arbitration in central Massachusetts.
The Arbitration Process
After the legal dispute arises and informal negotiations break down or fail to resolve it, arbitration begins when one of the parties files the demand for arbitration. This demand lists the parties and includes a description of the dispute, evidence supporting that description, and what the relief that the filing party wants. It is filed with the chosen arbitration body, often for a filing fee, and served on the respondent.
The respondent then has a fixed amount of time, often around a month, to address each claim in the demand, raise legal defenses to the allegations, and make any counterclaims against the filing party.
The parties will then choose an arbitrator to hear their dispute. That arbitrator will then set a preliminary hearing for the parties to arrange a schedule for the dispute resolution. This includes things like:
- How long the evidence-gathering process, called discovery, will last
- The deadlines for other legal filings
- A tentative arbitration hearing date
Each side will then gather and disclose evidence according to the rules set out at the preliminary hearing, all while the arbitrator acts like a referee over the process.
Finally, there will be the arbitration hearing. Each side will present its case to the arbitrator, similar to a trial in court, but far less formal. The arbitrator will then deliberate on the case before issuing a written award that explains their decision and awards the parties the appropriate relief. The prevailing party can then take the award to court for a judge to confirm and enforce it.
According to attorney David S. Katz, “Arbitration is basically like a streamlined, no-frills, relatively inexpensive, fast-moving version of the trial that culminates litigation.”
Binding or Non-Binding Arbitration
Arbitration is typically binding, meaning that the results are legally enforceable in court. Non-binding arbitration does not end with an award – just an advisory opinion of how the dispute would be resolved after litigation.
Arbitration Details in Contracts
Some of the details about arbitration are included in the contract between the parties in dispute – including whether the parties to the contract are legally required to go to arbitration before they go to court. Because these details can have a significant influence on the resulting arbitration process – like which arbitration body the arbitrator will come from – the party that drafts the contract can effectively tilt the playing field in their favor.
Massachusetts Arbitration Lawyers at the Katz Law Group
If you are interested in pursuing an alternative dispute resolution method for your business dispute in Massachusetts – read more about how mediation works here – call the Katz Law Group at (508) 480-8202 or contact them online.
