Is Arbitration Better Than Litigation?
The topic of litigation and arbitration is one that has been discussed quite a bit in the last year. Most people think that arbitration is the better option than litigation, but do any of the facts to support this belief? The answer to this question can help you decide whether or not you should pursue a lawsuit versus filing an arbitration claim.
Most people assume that arbitration is the best option because it is much less expensive than a legal process. But is that really true? How much less does arbitration cost you compared to litigating your claim?
You can usually save hundreds of dollars per hour in the arbitration process. Even if you had to hire a professional to represent you, the cost would be about the same as a litigation case. If you don’t have the funds to hire a lawyer, you can always hire an arbitration agent who will help you through the entire process. This is often a great way to get involved in a claim.
Arbitration costs are much lower than litigation because there are no judges involved. The courts are busy with other cases and are often out of session when these disputes arise. That means the costs for arbitrators and attorneys are much lower compared to litigation.
Arbitration can be very quick compared to litigation. There is no trial, so there is no waiting around for weeks to see if the judge will take up your case. This can mean many more hours at work compared to litigating a case.
A lot of people who have major health issues may want to be able to get insurance right away. Having a plan in place will keep you from having to wait months for a decision. By going to arbitration you can often get a much better plan immediately rather than having to get to the court system.
While it is true that arbitration is a lot cheaper than litigation, it is also true that there are many advantages to going to arbitration over litigating a claim. The first advantage is the ability to save hundreds of dollars per hour if you are dealing with a professional. If you aren’t a professional in the legal field, this can be a huge advantage.
Another advantage to arbitration is that you won’t have to pay anything up front for the arbitration. Often there are no fees or other costs associated with an arbitration claim. However, this doesn’t mean that arbitration is cheap!
Some people like arbitration more than litigation simply because it isn’t as costly. You will still have to pay an initial fee for the services of an arbitration agent, and there may be court costs involved. On the other hand, you can save quite a bit of money on arbitration if you make sure that the company you are using is reputable.
Make sure that you use the right company to represent you. It is easy to become ripped off by companies that offer arbitration and then charge you for nothing. You need to get an independent arbitrator if you want to save a lot of money.
You need to make sure that you are going to be getting the best results possible. After all, the only person who really benefits from litigating a claim is the person who files the claim. Don’t forget that if you are going to lose a case that the party that lost is likely to try to sue you for their expenses.
Keep in mind that aggressive claims usually end up costing the plaintiff more money than they would have spent in arbitration. That’s because arbitration allows the case to move forward without a fight. The case ends up getting resolved quickly and the plaintiff ends up making a lot of money because they win.
How to Handle Litigation – Alternative to Litigation
When attorneys are called in to litigate a case they must do so. However, some attorneys may be less likely to accept cases where the client has chosen a non-litigation option. Can attorneys defend litigators who are uncomfortable with cases in which they don’t want to take on? What alternatives to litigation can clients seek?
Lawyers and paralegals can find out about client choices for non-litigation options. If you consult with an attorney, they can help you find out what your options are. In addition, attorneys frequently work on contingency fee agreements with clients who choose a non-litigation option.
Some lawyers are reluctant to handle a case that doesn’t fit their specialization, especially when there are non-litigation cases available. This is unfortunate because some people may need their attorney and others may not. A litigator is under pressure to make as much money as possible. For example, if a litigant needs a lawyer but has chosen not to take a case, the litigant will not be paid a fee, so the litigant would lose their attorney.
Clients should therefore be aware of what they can expect when the case is not litigated. Litigation can be costly, and a litigant may not wish to go through the litigation process. There are other alternative to litigation that clients should consider.
Many non-litigation cases involve settlements or court-ordered settlements. Non-litigation cases often end with a negotiated settlement. Settlement negotiation normally involves a fee for the attorney, and the client is able to reach a mutually beneficial settlement.
As with limitations, a litigant should evaluate the options that are available to them prior to selecting a non-litigation case. While there are cases in which a litigant will have no choice but to accept a non-litigation case, there are cases in which a litigant might not have a choice. If a litigant selects a non-litigation case they will not be paid a fee, and they could be left holding the bag if the case does not settle.
Litigation does not always mean taking on a very complicated case. There are also options such as mediation, discovery, and resolution that can be used to help clients achieve the results they desire. The client can ask the litigant to take the case on a contingency basis, where the litigant pays a portion of the fee (usually 40%) and the client is left to get the other 60%.
Mediation offers the client the chance to get the situation resolved without taking on the risk of litigating. Litigation often means being forced to take on a litigant who does not care about the client or the case. A settlement negotiation usually occurs quickly, so a client who agrees to mediation can enjoy a quick resolution. This option is best for those clients who cannot afford a lengthy litigation process.
Discovery is typically the best option for most clients. The litigant will typically contact the client with a list of issues to be resolved. The client is provided with an opportunity to respond to these issues before the litigant takes action.
Arbitration is a common alternative to litigation. Although arbitrations can be long and expensive, arbitrators tend to be fair. If a litigant cannot afford a long, expensive litigation process they can choose arbitration. Additionally, most arbitrations are confidential, meaning that they won’t become part of the public record.
Options are not limited to litigation. Some clients choose to settle their cases without litigation. In these cases, the client can negotiate a settlement with the litigant without taking a case to court. Settlements tend to be faster than litigation, which is good for many clients.
Clients should discuss their options with their lawyers and consider what is best for them. Any case can be handled in one of the non-litigation options.