Where attempts to negotiate and reach a settlement have failed, arbitration is a private alternative to court that enables the parties to choose a neutral decision-maker who will consider the evidence, apply the law, and render a binding decision.
Unlike litigation, arbitration allows the parties to design most aspects of the process to suit their needs such as when and where the arbitration will take place and other procedural details that are set out and clarified in an arbitration agreement. It provides the confidentiality and flexibility that many parties would prefer, especially in the context of a business dispute.
One of the main advantages of arbitration is its capacity to have disputes resolved quickly. Even though the majority of court actions settle before trial, this often occurs only after lengthy and expensive trial preparation, including examinations for discovery. Arbitration may provide the opportunity to side-step prescribed procedural requirements of litigation. The parties also determine the timeframe for the arbitration, allowing them to bypass delays common in litigation.