This is one of the methods that the business people use to settle their disputes. This can be included as a binding or a non-binding agreement when signing contracts. This allows both the aggrieved parties to work out on a plan of settling their cases out of court. Because you will not attend the court sessions this will save you time and also the expenses involved in processing a court case. Both parties have to agree on this process, and they should never be forced to follow this process. These cases are arbitrated by the American Arbitration Association which is one of the most known organization in providing these services. There are also associations that are available, and they can also be used and identified in the contract. When you decide on the arbitration process you have to pay both the arbitrator and the and the resolution provider. This is not expensive if you compare the process with the normal court case proceedings where you have to travel to the courts every time you are summoned. The alternative dispute resolution is a flexible process and also convenient to the parties involved because it saves them time and also it gives them the chance to decide on when, where and the time they will meet for the negotiations.
When you want to use the arbitration clause, you must negotiate on the most favorable state law and the alternative dispute resolution Jurisdiction. When you choose a local state law you also will get a chance to choose a preferred law firm within your locality to handle your case if you don’t agree on the negotiation level. Always ensure that you get the one that will be most favorable to your case.
For cutting down on the costs restrict your mediator on the things he can talk about. They should be allowed to state or mention the winner or loser and without going into the deeper details of the case. They can also opt for the reasoned decision, where in this case the judge gives their reasons for making this decision this depends on whether the case is complicated and will require explanations. By deciding to do this allowing the judge this authority, you lose some of the control over cost, but it is important that you know the basis for the judge reaching that decision. Restricting the appeal will maximize the capability of settling the case before it even proceeds to the judge hearing. The parties can go through the objectives and consider the proposed contracts. Through the help of the mediator they can review the contracts and make great progress on the case. The mediator should be neutral and listen to both sides before making a decision. The settlement is reached privately and without involving the public because this is considered a private matter rather than public. In the Binding arbitration process the judge listens to both parties evidence before making the final determination.