Arbitration is by no means a new option for resolving disputes. Yet, parties and their counsel may not be aware of everything that this ADR method brings to the table. Here are five things you may not know about arbitration.
1. A successful arbitration begins with the initial contract
Parties must set the stage for a successful arbitration when working on contractual terms and everyone is getting along.
“If you want to have an efficient, speedy and economical arbitration, start talking when the underlying contracts are being negotiated,” says Judge Fern M. Smith (Ret.), a San Francisco-based JAMS arbitrator. “Arbitrators are controlled in great part by the wording of the arbitration clause in the underlying contract between the disputing parties.”
This wording, says Judge Smith, can cover a variety of issues such as choice of law and venue, the amount of discovery and the procedural or administrative rules that will apply to the arbitration.
“Although the arbitration clause may be modified by stipulation, that’s much harder to accomplish once a dispute has dissolved into a demand,” says Judge Smith. Continue reading