Arbitration is an alternative to traditionally resolving business disputes in a trial. There are plenty of reasons this way of dispute resolution is becoming increasingly popular among various businesses. Experienced lawyers note that in some cases choosing this typically out-of-court method for resolving business disputes might be the most efficient, time-consuming way to find solutions. Read on and learn 3 solid reasons why.
1. Flexibility
Simply put, this out-of-court method is more flexible in scheduling and less complicated as both parties can define and agree on dispute resolution terms. For instance – language, place and law by which disputes will be resolved. Also, set the timescale of specific procedures and choose a “judge”, or to be more precise, an impartial arbitrator both sides trust. Depending on national arbitration laws, each party typically appoints one co-arbitrator.
Regarding the latter choice – an unbiased specialist could be a legal expert from a corporate law firm in Lithuania, Sweden, Germany, Spain or any other country relevant to your business. The arbitrator doesn’t necessarily have to be a lawyer – parties can choose a qualified specialist who understands a specific business market. However, it’s a legal process, so it’s wise to choose someone who understands important legal nuances and is experienced in handling similar cases.
2. Efficiency and Cost-Effectiveness
Litigation in court also means filling out much formal paperwork and attending court processes. We all know trials must be scheduled into pretty busy court calendars. Meanwhile, arbitration proceedings are way less formal. Some questions can be handled by phone calls, and some – during the meetings scheduled as both parties and an arbitrator are available. So, a legal resolution this way is much quicker than waiting for a trial date.
As it takes way less time than court proceedings, arbitration turns out to be one of the most cost-efficient ways to find solutions (most of the time). Also, preparing for arbitration is less complex than preparing for a jury trial. Therefore, it costs businesses fewer resources.
3. Privacy
Finally, arbitration means private resolutions. When it comes to business representatives or even well-known public figures, the confidentiality of sensitive business information is one of the main criteria. That’s where arbitration is a perfect way to resolve disputes. If both sides agree to keep it all strictly confidential, the case and all its details will remain out of the public eye.
Once both parties decide on choosing arbitration for resolving business disputes, choosing a trustworthy, highly experienced business representative for arbitration is essential. A specialist who understands the subtleties of certain legal aspects and the business market. Someone who can cope with non-standard and complex local or international business disputes.