Which is better for settling business disputes?

(iStock)

One of the main selling points of choosing arbitration over the courtroom to settle business disputes is the ability to save money, but arbitration isn’t necessarily cheaper. 

In fact, when it comes to construction disputes and other complex cases, arbitration can cost just as much and often more than litigation, especially if you’re paying a third-party administrative service as is required by some arbitration clauses, says Zelma Murray Frederick, an attorney with McGlinchey Stafford whose practice focuses on commercial, construction, complex commercial litigation, and collection disputes.

Frederick says factors to consider when deciding which route to take include:

• Cost: The parties will pay for the arbitrator(s), including their time and expenses. But discovery is usually narrower in arbitration, which can help keep costs down, “if the parties are reasonable about this.” 
• Timing: Arbitration can proceed more quickly,…

Read more…