Personal injury claims are a form of resolving a dispute based on fault. Other ways of resolving disputes are arbitration and mediation. They are referred to as alternate forms of resolution as they take a different route from resolving matters in court. This article will discuss arbitration as alternate forms of dispute resolution.
It must be noted that both mediation and arbitration are private ways of resolving a dispute. While personal injury claims are court cases and have a public record, arbitration and mediation do not. And it is because of such privacy that parties may choose this form dispute resolution.
Arbitration as Dispute Resolution
Mediation and arbitration allow for parties to create their own ground rules when settling their dispute. This includes aspects such as:
- The type of evidence that can be presented
- What kinds of experts can be consulted
- Concepts the final agreement will be based on
Between the two forms of dispute resolution, arbitration is the more formal process. This is because arbitration follows formal rules with regards to procedure. Further, the arbitrator is likely to have legal training, however, a mediator does not have such legal training.
The arbitrator is a neutral third party, however, he/she must have some expertise in the dispute subject area. The parties need to agree as to who the arbitrator will be and how they will be selected. The arbitrator has the authority to make decisions and determinations that bind the parties. Their job is to listen to both sides and make decisions that bind both parties. The key advantage of this is it avoids the risk of parties not agreeing as the arbitrator makes the decisions. Further, the decisions are legally binding. The key disadvantage is that either party may be unhappy with the result and may choose to go to court.
There are many advantages and disadvantages to arbitration and mediation. To learn more, speak to your attorney for advice on alternate dispute resolution in your case.