Pre-hearing procedures are more limited in arbitration than in court, and arbitrations are typically resolved in 12 months as opposed to 18 months to two years or more for court cases. However, unlike court, formal rules of evidence and procedure are inapplicable, and therefore the process is often more streamlined and less contentious. Many arbitration hearings are resolved in less than two full days of hearing time. In addition, the parties do not have the procedural and evidentiary protections provided through our court system. Limited discovery can be disadvantageous.
Arbitration requires the payment of significant filing and hearing fees.
An advantage of arbitration is that cases are resolved more quickly, generally within 12 to 15 months. Experience has shown that brokerage firms are generally unwilling to make settlement offers before a claim has been filed. Brokerage firms sometimes seek to delay matters by suggesting that the customer write a complaint letter. We recommend that customers not write complaint letters to their brokerage firms without the assistance of a lawyer. Such efforts rarely bear fruit, and while time is passing the statute of limitations continues to run.