Binding arbitration: A trap for the unwary

Wouldn't it be great if there was a way to resolve disputes quickly and cheaply, without having to go through the hassle and expense of a trial? That's what binding arbitration promises. But before you sign up for arbitration, be aware of the potential pitfalls.

Binding arbitration is a form of alternative dispute resolution (ADR) in which the parties agree to have their dispute resolved by a neutral third party, or arbitrator. The arbitrator's decision is final and binding on both parties, and there is no right to appeal.

Binding arbitration can be a good option for resolving disputes quickly and cheaply. However, there are some important things to keep in mind before you agree to arbitration.

• Arbitration is not always fair. Arbitrators are not judges, and they are not subject to the same ethical rules as judges. This means that arbitrators may be more likely to favor one party over the other, especially if the arbitrator is appointed by one of the parties.
• Arbitration can be expensive. While arbitration is often cheaper than a trial, it can still be expensive, especially if the arbitration is complex or if the parties hire attorneys to represent them.
• Arbitration is not always confidential. Unlike trials, arbitration proceedings are not always confidential. This means that the information that is disclosed during the arbitration could be made public.
• You give up your right to a jury trial. When you agree to arbitration, you give up your right to have your case heard by a jury. This means that you will not have the benefit of a jury's collective wisdom and experience.
• Arbitration can be a trap for the unwary. Many businesses include arbitration clauses in their contracts. These clauses are often buried in the fine print, and you may not even realize that you have agreed to arbitration until it is too late.

If you are considering agreeing to arbitration, be sure to read the arbitration clause carefully and understand what you are giving up. You should also talk to an attorney to make sure that you understand your rights and options.

Binding arbitration can be a good option for resolving disputes quickly and cheaply. However, it is important to be aware of the potential pitfalls before you agree to arbitration.

If you have any questions about binding arbitration, please contact me. I would be happy to discuss your specific situation and help you make an informed decision about whether or not arbitration is right for you.