Arbitration

Arbitration is a process where the parties select an "Arbitrator". The Arbitrator, as a neutral, will hear evidence and argument by the parties and then render an "Arbitration Award" which is final and binding upon the parties. Arbitration Awards are similar to final orders of a Court of competent jurisdiction and may be enforced in a federal or state court if necessary (in virtually all arbitration proceedings, the parties promptly comply with the Arbitration Award).

The Arbitration is conducted by a set of rules selected by the parties. Because of stream-lined proceedings for presenting evidence, an Arbitration proceeding has the advantages of speed, economy and privacy as compared to proceeding with a full blown case in Court.

In Arbitrations where money damages are the issue, counsel and the parties may enter into a "high-low" or "maximum-minimum" agreement. This is an agreement where the parties agree that irrespective of the decision of the Arbitrator, one party will receive a minimum payment of a certain amount, and the other party will not be required to pay more than a certain amount. The Arbitrator is not informed of this agreement. If the Arbitration Award is between the "high-low" figure, the Arbitration Award is final. If the Arbitration Award is above the "high" or lower than the "low", the award will be adjusted to reflect the parties' pre-existing agreement and then be enforced as a Final Award.

Arbitration can be used in virtually any civil case (other than matters such as child custody). In commercial disputes, Arbitration is a fast and cost effective way to resolve business disputes without the time, cost, and possible adverse publicity associated with lengthy court proceedings. Also, in Domestic Relation cases, Arbitration provides a means of the parties and their counsel resolving a number of matters in an equitable distribution dispute and then submitting the unresolved issues to Arbitration. Arbitration provides a means of maintaining confidentiality for the parties' financial and other personal matters.

When parties agree to arbitration, they may also establish a sub-set of unique rules which the Arbitrator will be required to follow. For example, there is a procedure commonly known as "Baseball Arbitration" in which one side make a demand and the other side makes an offer. The Arbitrator takes evidence and hears argument, and then must select whichever of the two numbers (the "demand" or the "offer") which he or she thinks is closest to the value of the case. The Arbitrator has no discretion to award any amount other than the demand amount or the offer amount.

Baseball Arbitration is suitable for certain types of cases, but is usually reserved for fairly unique circumstances. One of the benefits is that it puts a premium on each party putting a reasonable and fair offer and demand on the table. Incidentally, this Arbitration procedure got its rather colorful name because the Major League Baseball Owners and Players Association has a collective bargaining agreement which provided for this type of arbitration (if the parties could not agree, the team made a final offer, the player made his final demand, and the arbitrator had to select one of the two numbers).

All of these forms of modified Arbitration provide a means for the parties to reach a final and prompt resolution of their dispute, but still retain a degree of control over the contours of a final resolution.

The panel of Arbitrators offered by Juridical Solutions plc are Senior Professionals who have years of experience in handling complex civil and domestic matters.

Rules of Arbitration

Agreement to Arbitrate

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