About Arbitration and Other Methods of Dispute Resolution

What is arbitration?

Arbitration is a form of adjudication which is generally private and less formal than litigation in court. The decision maker is usually an individual or panel of three individuals selected by the parties or a neutral agency. In some cases, involving three arbitrators, each party selects an arbitrator and those two arbitrators select the third jointly. In most arbitrations, the parties agree that the result is binding and therefore enforceable, if necessary, in court.

How does arbitration differ from other dispute resolution processes?

In mediation, the mediator has no power to render a decision – it is simply facilitated negotiation. In case evaluation, the opinion of the case evaluator is non-binding and therefore will result in a resolution of the matter only if both parties find the opinion persuasive.

How much does arbitration cost?

Arbitration is generally less expensive than litigation, because the pre-arbitration discovery process is more streamlined, the proceedings are less formal, and there is no jury. Much of the advocacy can be done through briefs. On the other hand, there is additional expense because the arbitrator(s) must be paid, and it is possible, in a poorly managed arbitration, for the case to spin out of control. Experienced arbitrators can manage the process in a cost-effective manner, and in an appropriate case, encourage the parties to enter into an agreement limiting to a certain number of days the total amount of time for the arbitration.

Starting September 1, 2006, an administrative fee of $200 per party will be charged for all family mediation and arbitration cases and a fee of $250 per party will be charged for all commercial mediation and arbitration cases.  For arbitrations that go beyond two calendar days of hearing, there is an additional administration fee of $50/day per party.

If I choose arbitration, will my rights be protected and, if so, how?

In an arbitration, each party has counsel advocating on his/her/its behalf, just as in court. The arbitrators are insulated from improper influence by rules prohibiting ex parte contact and procedural guidelines (such as those in the Massachusetts Uniform Arbitration Act) which assure a level playing field.