It is no secret that lawsuits are expensive. Indeed, the cost of a lawsuit can even outstrip the potential gains in a sufficiently complex and protracted case. For this reason, before the issue is brought before a judge some people will try non-litigious solutions such as business arbitration.
Business arbitration is an alternative legal process to litigation that seeks to resolve a business-related injury. As with civil arbitration, a representative of each party will attend a meeting along with an impartial arbiter. Each side will present their case and their intended remedy and the arbiter will make a legally binding decision in favor of one party or another. While the arbiter’s decision is binding, it is possible for there to be no resolution if both parties do not agree to be bound by the decision of the arbitration agreement.
One of the unique things about business arbitration is that it may be the first or only option for employees with grievances against their employer. Some companies will include clauses stating that in the event of some breach of employment law, the injured employee must attempt to resolve the issue through arbitration before or instead of filing litigation. There may be some details as to where the arbitration must take place or how it will be performed.
