Let’s say you find out that someone close to you has been stealing from your business. In order to recover that amount, you contact them and ask them to confess. With that, you also wish to get the compensation right away. However, you receive refusal in return. Since you think taking them to court will be too much, you consider arbitration instead.
But here’s where you are making a mistake, at least according to the list of cons that we have to share with you. In the end, you just might think that even if it’s someone close to you who has violated the law, the best to do is go to court instead of hushing the situation with arbitration.
What Is Arbitration?
Arbitration is a legal option for people to explore in case they wish to settle out of court. When arbitration is considered, it usually includes an arbitrator and the two parties with their case. While the arbitrator plays the role of a mediator here, it is not necessary for him or her to have a law degree. Now that you have been introduced to this new technique, let’s hear the 10 things that will make you say no! to considering arbitration.
#1 Naming All Your Fortune To The Arbitrator
Did you think that settling your legal case with arbitration will cost you lesser than a penny? Well, that’s where you are wrong. Arbitration can easily cost you more than taking your case to the court. Resolving your legal problem with a lawyer is far less complex than dealing with an arbitrator. With that, arbitration comes in two styles; binding and non-binding.
Binding arbitration stands for where you cannot take the case the issue back to court as compared to a non-binding arbitration. However, if after paying the hefty fee to the arbitrator, you still have to take your case back to court then that just means spending all your assets on that one case. And what happens if the amount you wish to recover is not even one-fourth of the fee you paid to the arbitrator?
#2 Zero Fairness Level
Often times people who consider arbitrators over lawyers report issues with the fairness of their judgments. Say a company you have a case against wishes to arbitrate the case. However, if they are already familiar or previous clients of these arbitrators, that just means that the arbitrator is going to lean towards them more. Hence, you get dragged into something that could have easily been settled in court within a day or more.
#3 Snail Speed
Just when you found out arbitration is not that cheap, you should also find out that this category is not faster than litigation. If your arbitration case includes multiple parties, complicated disputes, various arbitrators and so on, your case can take way too much time than you anticipated.
#4 Deciding The Location Forever
If the location picked is in another state, city or county it can really cost you a lot to travel there and get time off work.
The rule is, once the arbitrator makes a decision that’s what you have to roll with. there’s no going back. And there’s no room to challenge them.
#6 Jury, What Jury?
Unlike court settings, arbitration happens in a different setting. That then means that you do not have a jury present who can help you out. Your case and its decision are completely under control of your arbitrator (scary, is it not?).
#7 The Limit Of Damages
Say you filed for arbitration because you wish to get all the damages back from the opposing party. If the arbitration decides to split the amount in half and settle it that way, that simply limits your recovery.
#8 Limited Rights – Say Bye-Bye To Court
The common knowledge is; Once your arbitrator finalizes their decision you cannot make an appeal in court to make them change it. Because the rules of court don’t apply in this decision.
#9 A Realm Where Confidentiality Does Not Exist
If your arbitrator has a regular client from the opposing party, chances are they are willing to leak information from you to them. That simply exposing you and you will end up hearing a decision that goes against your interests.
#10 They Like Being Corrupt
Most arbitrators can settle for bribes easily. Because they might see you once in a lifetime but if the opposing party is a regular, the arbitrator leans more towards them, especially when there are hefty bribes involved.