Many contracts, including construction, employment, and real estate contracts, require parties to arbitrate their disputes rather than resolve them in a lawsuit.  Arbitration agreements vary widely from contract to contract, and may utilize private arbitration service companies such as the American Arbitration Association or JAMS.  Arbitration provisions may also dictate the rules and procedures parties must utilize in resolving their disputes, or may defer to the rules and procedures set forth by private arbitration service companies.  Although arbitration is conceptually similar to litigation, it is practically very different from a trial.   

The case is administered by a private company or governed by the rules and procedures set out in the arbitration provision of the contract.  The rules can be complex, and may vary depending upon the type of case involved.  For example, you may review  the commercial arbitration rules for the American Arbitration Association by following this link.  Filing and case administration fees can be significant and are often much higher than the filing and service fees of ordinary litigation.   

The case will be presented in a conference room to an arbiter or arbiters.  An arbiter may be an attorney or an industry expert (such as an architect or engineer).  This is significant, because the attorneys will not have to spend the time educating the arbitrator on many aspects of industry issues as they would with a jury.  The arbitrator will already be familiar with industry standards, practices, and issues.  This allows attorneys to focus on the facts and issues of this case.  However, as industry experts, arbitrators are frequently less swayed by emotional or dramatic testimony.  Attorneys with arbitration experience understand that the trial presentation to an arbitrator is very different from the presentation to a jury, and this experience gives the business that hires an experienced arbitration attorney an advantage.   

Appellate relief from orders compelling arbitration, denying referral to arbitration, and determining whether a party that did not agree to arbitration can be forced to arbitrate is undergoing significant change and development.  Also, both state and federal law governing arbitration allow only very limited appeal of final arbitration awards.  These and other differences that make arbitration unique present attorneys with challenges and opportunities that are not present in ordinary litigation.    The attorneys of Drew & McCallum have represented clients before the American Arbitration Association, JAMS, and other arbitration tribunals.  Let us put our experience to work for you.     

You can also find more information about arbitration on our blog.