ADR gained popularity in the early 1990s because of the overburdened civil court system. While state and county budget problems reduced available funding to build more court facilities and supply additional judicial officers, the last two decades have seen a boom in litigation. The resulting docket delays mean a steady increase in the overall costs of trying cases. Arbitration permits the parties to have an arbitrator or a panel of arbitrators hear and decide the dispute in an informal, non-courtroom setting. Small business owners should ask the following questions when deciding whether to use arbitration to resolve a dispute.
Arbitrations take months instead of the customary years to resolve a civil dispute.
While trials are a matter of public record, arbitrations can be confidential. Arbitrators can be selected from the industry in which the dispute occurred. Arbitrations take place at a mutually agreed upon location and time. By selecting an experienced, non-biased third party arbitrator, the parties eliminate the possibility that a jury will fail to understand the intricacies of the disputed claims. The key to a successful resolution through arbitration is the skill level and impartiality of the arbitrator or panel of arbitrators.