Alternative Dispute Resolution, Mediation, & Arbitration
When a business dispute with another person can not be settled by negotiation, the usual way to resolve the impasse is to file a lawsuit in a state or federal court—the default dispute resolution procedure. However, the attorneys’ fees and legal expenses to prosecute or defend court lawsuits are expensive. Sometimes parties to a dispute simply can not afford to pay them if insurance coverage (which might provide a defense to certain types of lawsuits and claims) is unavailable. Partly in response to this problem, many businesses now agree, in advance, to alternative dispute resolution procedures in their contracts, which will aid them in affordably resolving future disputes with those with whom they do business. The most common of these alternative dispute resolution procedures are mediation and arbitration— matters with which the attorneys at The Lassiter Law Firm have considerable experience and expertise.
What to know about mediation
Mediation is a process in which an impartial person—the mediator— assists parties in reaching their own settlement. The mediator does not have the authority to make binding settlement decisions; their role is to help the parties explore issues, needs, and settlement options. The mediator may offer suggestions and point out issues that the parties may have overlooked, but resolution of the dispute rests with the parties themselves. A mediation conference can be scheduled very quickly and requires a relatively small amount of preparation time. Many cases are resolved within a few hours. Statistics show that 85% of commercial matters end in written settlement agreements. If mediation is unsuccessful, the parties may decide to quit the process and file a lawsuit in court, or they may agree to submit unresolved issues to arbitration in lieu of a court lawsuit.
What to know about arbitration
Arbitration is the submission of a dispute to one or more impartial persons—the arbitrator(s) — for a final and binding decision. Such private arbitration, as it is sometimes called, is akin to a private court system where the arbitrators act as judges. Their decisions about the parties’ disputes are legally binding. Private and confidential, arbitration is designed for quick, practical, and economical resolution of disputes. Parties can exercise additional control over the arbitration process by choosing arbitrators that have expertise in the industry they are engaged in, and by adding specific provisions to their contracts’ arbitration clauses. Parties can also maintain control when a dispute arises through the modification of certain of the arbitration rules to suit a particular dispute. For example, parties to a contract may agree to such matters as the issues subject to arbitration, the qualifications and number of the arbitrators, the types of evidence to be used, the locale of the arbitration hearing, etc. The parties may also provide for expedited arbitration procedures, including the time limit for holding the arbitration hearing and/or rendering an award if they anticipate a need for hearings to be scheduled on short notice. All such mutual agreements will be binding on the arbitrator(s).
Experience that counts when you need it
Mark Lassiter is an experienced arbitrator and mediator and serves on the Commercial, Construction, and Large and Complex case panels of the American Arbitration Association. He is an expert on Arizona arbitration law and regularly speaks and writes on such issues. Click here to download Mr. Lassiter’s Mediator/Arbitrator Resume.
The East Valley attorneys at The Lassiter Law Firm have been involved as mediators, arbitrators or attorneys representing parties in mediation or arbitration proceedings in numerous alternative dispute resolution proceedings. They can give you the best possible legal representation in a matter that is subject to mediation and/or private arbitration.
