Why Arbitration is Preferred to Litigation in 99% of Cases

Employment discrimination

For many types of complex commercial cases, arbitration services are a preferable alternative to litigation. They offer the benefits of the federal courts system, combined with the flexibility to make rules that suit the situation and both parties. Arbitration is also less costly and time consuming than litigation, and offers the advantage of confidentiality. Many practitioners are former judges and attorneys and also well qualified to investigate issues like securities fraud and to carry out other public and private sector investigations.

ADR as an alternative to litigation
Alternative dispute resolution or ADR, also known as arbitration, is an alternative to expensive and time consuming litigation in the courts. It offers many advantages over litigation, while preserving the best features of the federal courts system, such as discovery, decisions based on law, and the option to appeal.
Unlike the court system, arbitration offers a speedy and cost efficient process with confidentiality, customization, and enforceability. This makes it an attractive option for cases with high economic stakes. With so many advantages over litigation, arbitration is becoming a preferable alternative, with many companies choosing to settle via ADR. In 1962, 11.5% of civil cases went to trial. Nowadays, even for complex commercial cases, only about 1% actually make it to trial. The rest are settled through ADR mechanisms.

Preparing for arbitration
ADR practitioners include former judges and attorneys, and have a high rate of success in helping achieve settlements that are acceptable to both parties. To prepare for arbitration, mock trials conducted by the experienced former judges can help to identify and hone the best arguments and strategies. Case tracking software helps clients to follow the progress and to access materials in a timely manner.
ADR follows federal court rules based on the Federal Rules of Civil Procedure (FRCP), the Federal Rules of Evidence (FRE), and the Federal Rules of Appellate Procedure (FRAP). These can be modified to suit the case if agreed by both parties. Former judges can also provide expert testimony, and support for discovery and settlement talks.

Public and private sector investigations
Arbitrators are often former judges or have served as U.S. Attorneys. They have years of experience in litigation from both sides of the bench. They are thus well placed to carry out investigations into matters concerning public and private sector investigations, such as securities fraud, white collar offenses and environmental action lawsuits such as oil and gas litigation.
For class action lawsuits dealing with environmental law or civil rights, practitioners can help to document problems like air pollution and water shortages. For instance, air pollution from industrial plants is linked to deaths due to respiratory or heart diseases. Reducing pollution could save as many as 5,00 lives each year.

ADR is becoming more widespread as more companies become acquainted with its advantages. ADR partitioners are often former judges, who are also well placed to investigate public and private sector cases like securities fraud and white collar crime.

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Sarah Todd

Sarah Todd

Sarah Todd, an investment banker, is a reporter and researcher for one of London’s leading media outlets. Formerly a trader and market maker at FTSE, she turned to media during the global recession. This website features some of her best and favourite articles, from all parts of the business world. Please let her guide you and your enterprise along the path to prosperity.