Construction Law

What are the Benefits of Arbitration? Part 1 featured image

What are the Benefits of Arbitration? Part 1

According to the American Bar Association (ABA), arbitration is “private process where disputing parties agree that one or several individuals can make a decision about the dispute after receiving evidence and hearing arguments.” Arbitration stands in stark contrast to litigation and mediation, occupying a space somewhere in-between the two.

In some ways, it takes the best qualities of litigation and mediation and combines them to help disputing parties reach binding, amicable resolutions without putting personal information under a very public microscope. In this two-part series, the Nashville contractor lawyers at Cotney Attorneys & Consultants will discuss the benefits of arbitration and explain how contractors can maintain important business ties while simultaneously cutting costs and saving time. If you’ve recently come into conflict with an owner, consult a Nashville contractor lawyer to learn about your options for handling (and moving on from) the dispute.


When you’re embroiled in a dispute with an owner, you don’t want your colleagues and competitors to watch you battle it out in a courtroom. Private disputes are best handled in private, but when you use litigation to resolve an issue, you can kiss your privacy goodbye. Arbitration is an informal process that only involves the disputing parties, their attorneys, and an arbitrator. This prevents leaks to the press and ensures that your name stays out of the headlines. Nothing undermines a business more quickly than bad press. When you opt to resolve disputes with arbitration instead of litigation, you can maintain your company’s good reputation and avoid a toxic narrative.

Timely Resolution

One of the most significant drawbacks of litigation is the amount of time it swallows up to reach a decision. Speed of process is important when multi-million dollar projects with impending deadlines are on the line. One courtroom bout could lead to countless others when litigation related to one project affects the outcome of another. It could take months or even years before a hearing is scheduled and disputing parties are called to meet before a judge. On the other hand, arbitration can be conducted immediately following a dispute. It’s a decidedly quicker process that helps you reach an amicable, binding resolution without the seemingly interminable wait of litigation.

In part two, a Nashville contractor attorney from Cotney Attorneys & Consultants will continue to discuss the benefits of arbitration.

If you would like to speak with one of our Nashville contractor attorneys, please contact us today.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.