Arbitration Advantages and Disadvantages – A Practical Guidance Note

Arbitration Advantages and Disadvantages – A Practical Guidance Note
January 27, 2023 Gary

by Gary L. Benton

Contracts typically include dispute resolution procedures to address conflicts that may arise. This practice note considers the advantages and disadvantages of arbitrating versus litigating disputes. It also includes a discussion of other common alternative dispute resolution procedures. While this practice note provides guidance to U.S. parties and their counsel, it is jurisdiction- and industry-neutral.

Arbitration in the U.S. is a form of alternative dispute resolution (ADR) used to resolve disputes without resort to court litigation. There are various varieties of arbitration but, on the whole, arbitration is distinguished by providing out of court binding resolution on the merits. Arbitration has various advantages and disadvantages compared to litigation, and some of its features may be viewed as an advantage to some and a disadvantage to others, and vice versa.

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Reprinted with permission – 2021 Practical Guidance LexisNexis