Pros And Cons Of Arbitration Agreement

For: In arbitration proceedings, the dominant party may file a motion in the District Court to uphold the sentence and bring the verdict in accordance with the sentence. As soon as a court renders a judgment, the sentence can be carried out like any other court decision, including the collateral of bank accounts and the execution and seizure of assets. Arbitration is a method of resolving disputes without going to court. Sometimes a lawyer will recommend an arbitration procedure to a client as the best way to resolve a claim. As part of the arbitration process, the dispute is referred to a third party (the arbitrator) who will resolve the dispute after hearing a submission from both parties. The presentation can only be documents presented to the arbitrator on each side. More often, each page, in addition to the documents submitted, will make oral arguments personally. As a general rule, each page will have a lawyer to make oral argument for it. Sometimes there are witnesses testifying. Pro: The arbitrator determines the date, time and place of hearing after consultation of the parties. It is customary for arbitration to last three to six months between the original claim and the issuance of a sentence.

Under AAA rules, special rapid tracking procedures apply when the counterclaim or request does not exceed $75,000. In this case, the arbitrator is required to set a date for the hearing within thirty days of confirmation of the arbitrator`s appointment. After employees or former employees decide to start arbitration, preliminary hearings allow the company and employees to pass on their beliefs and explain their evidence to the arbitrator. Throughout the hearing, both parties present their case to the arbitrator. Then the referee makes a decision. After the judgment, an arbitration decision can be considered a judgment after confirmation by a court. The decision to accept mandatory arbitration often depends on whether the business is considered a potential defendant or a potential plaintiff. Those who see their companies as potential defendants often resort to arbitration of their contracts. For example, many owners suggest arbitration clauses of their contracts with the simple reason that they think there is no good reason why they should make it easier, cheaper and faster for a contractor to pursue the disputed claims. With a similar logic, many general contractors try to include a binding arbitration clause in their contracts with the owners, but exclude the clauses of their sub-contracts. Pro: Third parties who may be ultimately liable cannot be brought to arbitration without their consent.

The most common example is a dispute between an owner and a general contractor over an alleged error in the construction designs. According to arbitration rules, an architect responsible for defective designs cannot participate in the conciliation between the owner and the general contractor without the architect`s consent. As a result, most arbitration proceedings concern only both parties. An arbitration agreement alone does not mean that employers are protected from labour disputes over an employment issue. Federal and regional authorities may continue to sue employers when workers sue companies for violations of wages, discrimination or other laws and regulations. With the right agreements, both sides can take advantage of this process instead of dragging into the legal system problems that could take years to finally find a solution. The pros and cons of using labour arbitration procedures as a method of resolving disputes vary considerably on the basis of contractual terms. While the law is not fully regulated, the trend is to maintain and enforce labour arbitration procedures, unless they fall within certain types of arbitration that require workers to arbitrate.

Comments Are Closed