When Can Arbitration Be Utilized to Settle a Dispute?
Arbitration is an informal process that can be used to settle disputes without the need for costly and time-consuming litigation. During arbitration, both parties and their respective attorneys meet with one or more arbitrators who are responsible for listening to each party’s testimony and providing an impartial and binding verdict. There are many reasons why contractors prefer to use arbitration to settle disputes rather than taking their case to court, including:
- Arbitration requires consent from both parties
- The parties work together to select the arbitrator(s)
- Arbitration levels the playing field for both parties
- The hearing and results are completely confidential
- The arbitrator’s decision is binding and enforceable
At Cotney Construction Law, our skilled attorneys take the concepts and principles of Nashville construction law and apply them to the arbitration process to give our clients a distinct advantage when fighting for their rights. Arbitration can be used to settle a myriad of disputes, which we’ll cover in this informative article.
When the Issue Is Time-Sensitive
When you need to settle a dispute now, there’s no time to wait for a judge to schedule your hearing. It can take months, even years to resolve a dispute in court. For contractors, this is simply impossible. Projects must meet strict deadlines, and when contractors fail to meet these deadlines, it inevitably leads to more disputes. Taking a dispute to court when arbitration would have sufficed can lock you in a vicious circle of litigation and contractual disputes. Fortunately, owners are in the same boat. They want to save money and wrap up construction as soon as possible, which means they don’t have time to squabble in court either.
When You Want a Final, Unappealable Verdict
One of the major drawbacks of litigation is the opportunity for the losing party to appeal the decision. When this happens, you can bet that the amount of time and money you spend in court will increase significantly. The final verdict in arbitration is just that — final. That means you can return to work as soon as the process is complete without any concern about a last-minute appeal derailing your project and squandering your bottom line.
When Both Parties Want to Preserve Privacy
Litigation takes place in public court hearings. That means the general public has access to any information pertaining to the case. The story of your dispute could be picked up by the news media. By the time newspapers hit newsstands, your company’s reputation could be dragged through the dirt. This can have a disparaging effect on your business. Furthermore, letting your company’s information leak into the public spotlight could lead to a short-term plummet in business and stifled success in the long-term. On the other hand, arbitration is a private process taking place behind closed doors. The entire hearing is conducted in private without any outside interference. Your disputes are kept secret and your reputation remains intact.
If you would like to speak with an attorney from our Nashville construction law firm, 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.