Does Arbitration Work?
Arbitration has traditionally been a popular method of dispute resolution in workplace, construction, businessdisputes and securities regulation, but is gaining traction in other areas such as Family Law.
The popularity of arbitration can be attributed to it being mandated in some cases but also to the relatively short amount of time it takes compared to going to court for a trial.
For example according to this article from the US, from the time of filing to decision, arbitration takes an average of 475 days, while similar cases can take up to three years in court.
And although it costs roughly $3,000 to $4,000 per day plus legal representation and preparation which will also be costly, the time saved on the numerous interim hearings, reports and the trial in a litigation case will usually result in an overall saving in cost as well as time with arbitration compared to litigation.
Because of it’s advantages as a viable alternative to court, some arbitration proceedings are mandatory, while others are independently enforced by contract.
Other countries around the world are also recognizing the potential of arbitration. In Europe, arbitration has become the default for international disputes, and countries like Canada, Brazil, and Australia have shown increases in commercial arbitration, with strong government support.
The worldwide movement to embrace arbitration is a clear indicator that the process works.