Arbitration | MediationAAA Arbitration Advantages and Disadvantages |  Agreement For ADR

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Advantages of ADR

Arbitration. The parties have a say in selecting their  arbitrator or mediator for his sense of fairness and  expertise in the subject matter at issue. This can  shorten the amount of time that lawyers spend  educating the fact finder and save litigation costs,  overall.

A decision in binding arbitration has the same effect  as jury award and cannot be appealed absent fraud  or some significant error of the application of law,  much like an award in court.

Another advantage is the time that it takes to get a  decision. The parties can stipulate to get a trial date  relatively quickly in arbitration. In court, however, the  parties are at the mercy of the judge’s availability to  hear a case and the county scheduled trial terms.

Mediation. The immediate benefit of mediation is, the  parties do not have to face each other directly,  which can create the risk of one side being offended  by the other’s comment or tone. A mediation allows  all communications to flow through an intermediary,  who is skilled at resolving disputes, paid by the hour,  and will keep the parties there until key concessions  are made (based on strengths of the other side’s  case), thus increasing the changes of settling a  dispute.

Drawbacks of ADR 

As mentioned, parties often complain of the cost of  filing a claim in arbitration. There is a filing fee in AAA  arbitration, for example, which can range from $775  to five figures if the amount at issue exceeds five  million dollars. Plus there are costs for deposition  transcripts and other fees just like proceedings in  court.

Plus, any form of mediation-type ADR is only as good  as the parties’ willingness to compromise. If one or  both of the parties will not agree to basic things  (such as the time period for discovery or other  matters to streamline the process), then there may  not be any clear advantage to attempt any form of  ADR, or alternative dispute resolution.

Free Consultation.

Our Pittsburgh attorneys offer a free and confidential  consultation about all the particular advantages and  disadvantages in any given case.

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