What is arbitration?
In our increasingly complex lives, disputes of importance are bound to happen.
There are ways of solving the problem. The easy way out is simply to ignore it, which leaves individuals frustrated and resentful. On the other extreme, go to court. As we all know, courts are expensive, slow, stressful and formal. Between the two, there is mediation and arbitration.
Mediation is an amicable and confidential attempt to solve a dispute through a controlled negotiation process managed by a mediator who is hired by the parties.
However, mediation has its limits. While the mediator skillfully attempts to bring the parties together, all the mediator can do if negotiations are stalled is suggest a solution, but cannot impose it.
Arbitration takes mediation a step further. Arbitrators are selected by opposing parties to solve a dispute. Upon reviewing the evidence and hearing both parties, arbitrators make a binding and enforceable ruling on the issue, called an “Award”.
While arbitration may sound like court, it is actually very different from the traditional judicial system – arbitration is usually consensual and confidential. In addition, arbitration is cheaper, simpler, faster and can in many cases be dealt with remotely.