Arbitration Agreement

What is an Arbitration Agreement?

A personal injury arbitration agreement is a legal contract that states that any dispute arising from a personal injury will be resolved through arbitration, rather than litigation in a court of law.

Arbitration is a dispute resolution process where an impartial arbitrator (or panel of arbitrators) makes a decision on the dispute based on the evidence presented.

What are the benefits to creating an Arbitration Agreement?

1. Efficiency: Arbitration can often resolve disputes more quickly than court litigation, which can be slow due to crowded court dockets.
2. Cost: While there can still be significant costs associated with arbitration, it can be less expensive than litigation, especially for smaller disputes.
3. Privacy: Unlike court proceedings, which are typically public, arbitration is usually confidential. This can be particularly beneficial for businesses that wish to keep their disputes out of the public eye.
4. Control over Process and Decision-Maker: The parties can influence how the arbitration process will be conducted and may have a say in the selection of the arbitrator. This can result in a decision-maker who has more specific expertise in the area of the dispute.
5. Finality: Arbitration decisions are generally final and there are limited grounds for appeal, providing closure to the parties involved.
6. Preservation of Relationships: The less formal, more controlled nature of arbitration can help preserve the professional or personal relationships between the parties, which might be damaged by a full-scale court case.

In conclusion, an arbitration agreement can be a powerful tool for dispute resolution, providing a mechanism that can be more efficient, less costly, more private, and less confrontational than traditional litigation.