Arbitration is a legal process that involves resolving disputes outside of the court system. A neutral third-party, known as the arbitrator, is appointed to hear both sides of the dispute and to come to a decision. The arbitrator evaluates evidence, listens to arguments and witnesses, and renders a decision that is legally binding and enforceable.
Why Arbitrate?
For business professionals, the appeal of arbitration is clear – the process is quicker and less expensive than litigation. Because arbitration focuses the attention on the facts and issues themselves, rather than the legal process, the proceedings are usually relatively private and confidential. Arbitration also allows for custom resolutions of unique issues, which cannot always be found through litigation.
Modern Examples of Arbitration
Today, more and more disputes are being settled through arbitration. A great example is the NFL labor dispute that was settled in 2011 with the help of arbitrator Jonathan Fine. Fine heard both sides of the dispute and promptly rendered a decision that satisfied both the owners and the players. Another example can be seen in the ongoing iPhone patent dispute between Apple and Samsung. Even though it was initially sent to court, the dispute was eventually settled via arbitration.
Conclusion
Ultimately, arbitration is an effective and efficient way for business professionals to resolve their disputes without going to court. The process is fast, inexpensive, and confidential – and is becoming increasingly popular in the world of business and commerce.