when to file arbitration attorney

When Should arbitration be used?

Arbitration is widely used to resolve disputes in both the private and public sector. Arbitration is generally considered a more efficient process than litigation because it is quicker, less expensive, and provides greater flexibility of process and procedure.

What kind of cases go to arbitration?

In some cases, arbitration is required, primarily when contracts between the parties provide that any dispute will be resolved through arbitration. Arbitrators do not have to follow legal precedents, as judges do. They also don't have to explain the reasoning behind the decision.

How do you start arbitration process?

The arbitration process usually starts with the complaining party giving notice to the other about their intent to arbitrate a dispute. The notice includes the nature and basis for the proceeding. Following this notice the other party has a period of time to file a written response.

Why would parties prefer to use an arbitrator instead of filing a lawsuit in court?

Arbitration typically provides a speedier resolution than proceeding in court. The limited right to appeal arbitration awards typically eliminates an appeal process that can delay finality of the adjudication. 2. Flexibility.Feb 13, 2015

Who can initiate arbitration?

The arbitration process begins with a party filing a Statement of Claim with FINRA. The party who files the Statement of Claim is called a claimant. The party against whom the Statement of Claim is filed is called the respondent.

What are the three types of arbitration?

Parties can become involved in the arbitration process in one of three ways: judicial arbitration, contractual arbitration or by stipulation. Judicial arbitration is a statutory procedure (Code of Civil Procedure §§1141.10, et seq.) by which certain types of cases are directed to nonbinding arbitration before trial.

Who pays the cost of arbitration?

In California, no cost unique to arbitration shall be borne by the employee. Situations in which twenty-five or more similar claims are brought by or against the same party, represented by the same or coordinated attorneys are subject to a special fee schedule, as are class-wide arbitrations.Apr 30, 2021

What are the stages of arbitration?

There are five main stages to the arbitration process: (i) initial pleadings; (ii) panel selection; (iii) scheduling; (iv) discovery; (v) trial prep; and (vi) final hearing.Aug 22, 2014

How do you ask for arbitration?

In general, a Request for Arbitration or a Notice of Arbitration must contain the names of each of the parties, the names of the parties' representatives, a description of the dispute giving rise to claims, a statement of the relief sought, a description of the agreement containing the arbitration clause, the choice of ...

Who usually wins in arbitration?

The study found that in claims initiated by consumers: Consumers were more likely to win in arbitration (44 percent) than in court (30 percent).Nov 16, 2020

What happens if you lose in arbitration?

In effect, binding arbitration takes the place of a court trial. If the losing party to a binding arbitration doesn't pay the money required by an arbitration award, the winner can easily convert the award into a court judgment that can be enforced just like any other court judgment.Apr 22, 2019

What are disadvantages of arbitration?

There are also some disadvantages of arbitration to consider: No Appeals: The arbitration decision is final. There is no formal appeals process available. Even if one party feels that the outcome was unfair, unjust, or biased, they cannot appeal it.

Why do you need an attorney for arbitration?

The main reason you may wish to have an attorney represent you in arbitration proceedings is that it is a legal process that affects your legal rights. Additionally, in binding arbitration, you don't get a second chance, or the opportunity to appeal, if you don't like the outcome.

What is arbitration in court?

Arbitration is an alternative to litigation, the traditional court resolution process. It takes place outside of the courtroom, usually in a conference room. Instead of a judge, there is a neutral third-party arbitrator. Arbitration is appreciated as being less formal and expensive than litigation, though the price depends on the arbitrator used.

Why is arbitration so expensive?

Arbitration is appreciated as being less formal and expensive than litigation, though the price depends on the arbitrator used. Some can be very expensive. It is also believed to be a faster way to resolve disputes because the parties do not have to wait for their turn on the court's docket.

What is the role of an arbitrator in an arbitration?

The arbitrator hears both sides of the argument at the arbitration hearing, makes a decision, and issues an arbitration award. While there are specific arbitration rules, there are no formal rules of evidence or motion practice in arbitration. In other words, unlike court, you don't have to know the rules for collecting and submitting evidence, ...

Is the arbitrator's decision final?

Furthermore, they agree that the arbitrator's decision will be final, and they waive their right to appeal the decision if they don't like it. The entire arbitration process is private and not open to the public. The arbitrator's decision is also confidential, though it can be made public if one party needs to get the court involved ...

Do you need a lawyer for arbitration?

The short answer is no , you do not need a lawyer in arbitration. However, because the dispute resolution process is adversarial in nature, and the outcome is often final and affects your rights, you may want a lawyer's help in preparing and presenting your case.

How does a FINRA arbitration work?

There is a FINRA Code of Arbitration which contains the rules governing your case. A FINRA arbitration begins by filing a Statement of Claim. This will include a description of the dispute, the parties involved and the amount of money sought as damages. The Statement of Claim sets forth both the facts and the basic legal principles supporting your case. FINRA additionally requires a Submission Agreement, which is essentially an agreement to abide by FINRA’s jurisdiction to hear the case and to follow the FINRA rules and procedures for arbitration. It also establishes that, if the case ends with a hearing, the parties agree to abide by the arbitrators’ decision. The papers are generally filed electronically through FINRA’s portal, and FINRA will serve them on the Respondent brokerage firm.

What are the two types of witnesses in a broker arbitration?

This is when each party presents its evidence to the arbitrators. There are generally two types of witnesses: fact witnesses and expert witnesses . Fact witnesses, who are usually the Claimant, the broker and the broker’s supervisors, testify as to facts related to the matter, but do not give their opinions. Expert witnesses have more specialized knowledge about brokerage firm regulations and rules which enable them to interpret and express their opinions about the facts of a case.

What is a discovery guide in FINRA?

FINRA has a Discovery Guide which outlines all of the documents and information which should be exchanged by claimants and respondents in customer arbitrations, depending on the types of issues. These are deemed “presumptively” discoverable documents. The parties may also supplement these document requests with an additional request particular to your case. An experienced FINRA attorney will know what documents the brokerage firm has and what to look for. Oftentimes there are objections to producing these documents and the FINRA attorney will file a motion to compel the production stating the reasons that such evidence is needed. The opposing party then has time to respond to the motion to compel. The motion is then set for a telephone hearing with the chairperson (and sometimes the entire panel of arbitrators) and is ruled upon. The arbitrators have the power to order sanctions if one of the parties refuses to cooperate in discovery.

What are the rules of arbitration?

Arbitration rules may pertain to things like: How many arbitrators you will use; How long you will take to do discovery; Deadlines for providing certain notices or information; What kind of discovery you will be permitted to do; Whether certain types of evidence will be excluded;

What is arbitration in law?

What Is Arbitration? Arbitration is a formal method of alternative dispute resolution that has risen in popularity in recent years. It allows you to bring your dispute in front of a private arbitrator, rather than a judge, to decide your case. The arbitration process is private, and the parties pay the arbitrator’s fees.

How to prepare for an arbitration hearing?

An attorney can help you: 1 Select an arbitrator or arbitration panel, 2 Conduct legal research, 3 Investigate evidence, 4 Gather documents, 5 Interview and prepare witnesses, 6 Negotiate ground rules with the other party, 7 Present arguments to the arbitrator regarding discovery and admissibility of evidence; 8 Articulate complicated legal arguments, and 9 Question and cross-examine witnesses at the arbitration hearing.

Is arbitration binding or non-binding?

Arbitration can be either binding or non-binding. In binding arbitration, the arbitrator’s decision is final. You have to abide by the result just as if you went before a judge. But unlike a court ruling, an arbitration ruling is generally not appealable. In non-binding arbitration, the arbitrator’s decision is advisory.

Is arbitration more formal than litigation?

Although the arbitration process is less formal than litigation, it can still be complex. It’s really not something you want to tackle without an attorney. Moreover, since the arbitration process is different from typical litigation, it is important to have an attorney with arbitration experience.

Can you go to arbitration after a dispute?

The method of initiating an action will depend on the terms of your arbitration agreement. In some cases, you may agree to arbitration after a dispute arises. In other cases, you may be bound to pursue arbitration by the terms of a contract or other agreement.

Do rules of evidence apply to arbitration?

However, many of the rules of evidence and procedure that govern formal court hearings do not apply in arbitration. As with discovery, the type of evidence that will be allowed can be governed by the parties’ agreement, the arbitration organization’s rules, or the individual arbitrator.

What is the purpose of arbitrators?

Arbitration is a method of resolving a dispute between two or more parties by neutral, qualified individuals, who serve as decision-makers after weighing the facts of each case presented. The decision-makers are called arbitrators. Awards are rendered by independent arbitrators who are chosen by the parties to issue final, binding decisions.

Is arbitration binding?

The most important of these is perhaps the fact that an arbitration award is final and binding, subject to review by a court only on a very limited basis. Parties should also recognize that arbitrating their claims precludes them from pursuing the same claims through the courts. The arbitration process begins with a party filing a Statement ...

Does FINRA have arbitration?

FINRA makes available an arbitration forum—pursuant to rules approved by the SEC—but has no part in deciding the award. Arbitration of securities disputes against brokerage firms, brokers, or both provides a prompt and inexpensive means of resolving issues. There are certain laws governing the conduct of an arbitration proceeding.

How effective is arbitration?

Arbitration can be an effective way to bring disputes over cross-border transactions to a central forum with impartial decision-makers and predictable rules, but only if you specify both the venue and the specific law that will apply and govern the business relationship of the parties that is at issue.

What is an arbitration clause?

Anything not specified in the arbitration clause is subject to litigation. Arbitration clauses control resolution of a wide variety of disputes, over everything from construction contracts to the consequences of allegedly misappropriated intellectual property.

How long does a trial take?

In litigation, judges often put strict time limits on discovery, and trials are typically conducted over a specified number of consecutive days, often dictated by the trier of fact. Arbitration can proceed in fits and starts according to the schedules of the parties and the arbitrators.

Is arbitration cheaper than litigation?

Cost. Contrary to conventional wisdom, arbitration is not always cheaper than litigation. Arbitrators may not be bound by the same rules of evidence as judges in civil courts and may be inclined to allow almost any evidence or testimony the parties consider meaningful.