If a conflict occurs between your business and another company, such as a breach of contract dispute or a disagreement about a construction project, commercial litigation isn’t your only choice for a solution. Arbitration is an alternative dispute resolution method used by many companies. After reviewing the benefits of this option below, you may decide to pursue arbitration instead of heading for the courthouse. 

Why Arbitration Is an Alternative to Commercial Litigation 

1. Arbitration Decisions are Binding

Arbitration is a voluntary means of resolving disputes between commercial enterprises. Although the procedure takes place out of court, the participating parties agree to accept the arbitrator’s decision (called an award) as final and binding. Binding arbitration eliminates the potential for rehashing your claims in a lawsuit or appeal.  

2. Parties Exert Control

In commercial litigation, you cannot choose the judge who decides your case. However, in arbitration, the parties select and appoint one arbitrator or a panel of three who hear evidence and arguments before making a decision. You can choose arbitrators with expertise in a specific area of business or commerce, or individuals such as retired judges or corporate law attorneys with specialized knowledge of legal procedures involved in the case.

3. Arbitration Saves Time and Money

Compared to traditional litigation, the arbitration process typically costs far less. Arbitration rules also offer flexibility, which saves you time and money. Parties can decide to use witness statements instead of presenting witnesses for time-consuming live testimony. You can eliminate pre-trial motions and hearings that require your attorney to prepare for and spend time in court at your expense. The rules of arbitration, such as those set out by the American Arbitration Association (AAA), help streamline the process.    

The law office of MacVean, Lewis, Sherwin & McDermott, P.C. in Middletown, NY, offers 130 years of experience in commercial litigation and alternatives such as arbitration. Their high-quality representation and advice help you find and proceed with the best option for resolving your business-to-business dispute. Learn more about the firm’s other areas of practice online and call (845) 343-3000 to schedule a free consultation.