Is it Better to Settle or Go to Arbitration?

When someone suffers an injury because of another’s negligence, a legal claim often follows. That claim may be resolved in different ways: through a settlement, arbitration proceedings, or litigation. Many clients ask: is arbitration better than settling? Or is it better to settle than go to court? Deciding whether to choose arbitration or to settle disputes is complicated. Being informed of these processes will help you decide what is right for your personal injury case.

What Is Arbitration?

Arbitration is a private process used to resolve disputes outside of court. In arbitration, an impartial third party—called an arbitrator—reviews the facts of the case and makes a decision. The arbitration process is less formal than a trial but more structured than negotiation.

Arbitration agreements can be binding or non-binding:

• Binding arbitration: The arbitrator’s decision is final and enforceable, like a court judgment.
• Non-binding arbitration: Either party can reject the arbitrator’s decision and move forward with litigation.

Arbitration is commonly used in personal injury cases involving insurance companies, business disputes, commercial contracts, and other matters where both parties seek a faster and more private resolution.

Arbitration vs. Settlement: What’s the Difference?

Many people confuse arbitration with settlement. While both are alternatives to trial, they’re different. Arbitration involves a neutral third-party decision-maker, while settlement is a negotiated agreement. Understanding these distinctions can help you make informed choices about how to resolve your case.

• Settlement: An agreement reached between both parties. It usually happens through negotiation, often with the help of attorneys. No third party decides the outcome. Instead, both sides agree to the terms.
• Arbitration: A neutral third party makes a decision based on the evidence. Both parties present their arguments, much like a trial, but it happens outside of a courtroom.

Key differences between arbitration and settlement include:

• Control: In settlement, both parties have control over the outcome. In arbitration, the arbitrator decides.
• Finality: Settlement is mutual and can’t be forced. Binding arbitration is final and legally enforceable.
• Privacy: Both arbitration and settlement are private processes. However, unlike trials, arbitration and settlements are not public records.

How Arbitration Compares to Litigation

Litigating a case means that you are taking the case to trial. While this is sometimes necessary to resolve legal disputes in a personal injury claim, it is often a last resort because of the time, cost, and stress involved. Court trials can go on for months or even years, leading to emotional fatigue for the injured party. Additionally, courtroom proceedings are public, which may be undesirable for those who value privacy.

Here’s how arbitration proceedings differ from litigation:

• Time: Arbitration is usually faster than going to trial.
• Cost: Arbitration is typically less expensive than litigation. However, arbitrators must be paid, and both sides often share that cost.
• Procedure: Arbitration has fewer procedural rules, which can speed up the process.
• Appeals: Court decisions can be appealed. In binding arbitration, appeals are rare and limited.

When Arbitration Might Be the Right Choice for Your Personal Injury Case

Arbitration is not right for every case, but it offers benefits in some personal injury claims. It can streamline the resolution process and reduce legal costs. In the right circumstances, arbitration can also provide a more predictable and controlled outcome compared to a jury trial.

You might consider arbitration if:

• You want a faster resolution
• You’re seeking a private process
• You are willing to accept the decision
• The other party agrees or a contract that requires arbitration

Some auto insurance policies include clauses requiring arbitration to resolve disputes. Medical malpractice and construction injury cases may also involve arbitration clauses.

When Settling Your Personal Injury Claim Is Better

Most cases are settled. A Settlement gives both sides control and avoids the risks of a trial or arbitration. Settlement may be a better choice if:

• You want to maintain control over the outcome
• You’re concerned about the risk of losing in an arbitration hearing or court
• You want to avoid the unpredictability of a third-party decision
• The other side is open to negotiation

Settlement can happen at any stage—before a lawsuit is filed, during discovery, or even on the eve of a courtroom trial. At Munley Law, we’ve helped thousands of clients resolve their claims through favorable settlements.

Our Verdicts and Settlements

Munley Law Personal Injury Attorneys are nationally recognized for record-setting verdicts and settlements. A few examples include:

• $26 million for a truck accident victim
• $17.5 million settlement in a traumatic brain injury case
• $8 million for a client injured in a garbage truck crash

Our attorneys bring experience and a track record of results to every arbitration and settlement discussion. We prepare every case as if it will go to trial — because that preparation drives better outcomes, even in arbitration or settlement.

What to Expect During the Arbitration Process

If you decide to enter into arbitration for your personal injury case, it is helpful to understand what to expect during the arbitration process. It begins when both parties agree to arbitration or are required to participate based on a clause in a contract. After agreeing to arbitrate, the parties move forward with selecting an arbitrator or panel, often from a list provided by an organization such as the American Arbitration Association.

Here are the steps typically involved in arbitration:

• Selection of Arbitrator: Both sides agree on an arbitrator.
• Hearing Date: An arbitration hearing is scheduled. This often takes place in a private office or a conference room.
• Evidence and Testimony: Both sides present evidence, documents, and witness testimony to support their arguments.
• Decision: The arbitrator issues a decision, usually within weeks.

Even though arbitration is less formal than trial, it still requires legal skill and preparation. Our attorneys prepare thoroughly to protect your rights.

What are the Benefits of Arbitration?

Arbitration gives both parties a structured process to present their case without the rigid procedures of court. Arbitration also tends to be more flexible in scheduling, which can accommodate clients with demanding medical or personal needs. Arbitration often results in quicker payouts, which helps injured individuals cover urgent expenses sooner. Accepting arbitration offers some clear benefits for personal injury clients:

• Privacy: Unlike a court case, arbitration is confidential.
• Efficiency: Cases can be resolved in months, not years.
• Less stress: Avoids the emotional toll of a trial.
• Predictability: Decisions are based on facts and law, not a jury.

Arbitration Isn’t Right for Every Case

While arbitration has its advantages, it may not be suitable for every situation. It is important to consider the pros and cons of different ways of resolving legal disputes. This includes:

• Limited appeal: In arbitration, once the arbitrator decides, you may have no right to appeal.
• Costs: Arbitrator fees and attorney fees can add up. While these legal fees may be less than court costs, these costs should still be considered.
• Impartiality concerns: In some cases, arbitration clauses favor corporations or insurers.

Should I Agree to Arbitration?

Whether you agree to arbitration depends on your goals, the facts of your case, and what the other party is offering. Never agree to arbitration without first reviewing the clause with a lawyer. Some contracts—including insurance policies and healthcare agreements—may include mandatory arbitration clauses. You may have signed one without realizing it. We’ll review your documents and advise you on your options.

What If the Other Side Wants to Settle?

Many defendants and insurers prefer settlement. It gives them closure and avoids legal costs such as attorney fees. If the other side makes a settlement offer, we’ll review it with you.

We’ll consider:

• How the offer compares to your damages
• Whether future medical costs are included
• How long litigation might take
• The risks of going to arbitration or trial

If the offer is unfair, we’ll keep fighting.

How Munley Law Helps in Arbitration and Settlement

At Munley Law, we’ve handled thousands of personal injury cases across Pennsylvania. Whether your case involves a car crash, truck accident, workplace injury, or defective product, we have the skills and resources to represent you in arbitration or settlement.

Our lawyers include board-certified civil trial advocates and members of the Million Dollar Advocates Forum. We’re consistently recognized by Best Lawyers in America and Pennsylvania Super Lawyers.

Our legal team will:

• Review your arbitration clause or settlement offer
• Estimate the full value of your claim
• Prepare all documentation and evidence
• Represent you at arbitration or settlement talks
• Fight for the best possible outcome

What About Mediation?

Mediation is another option for resolving a personal injury case. It is a form of alternative dispute resolution that is different from arbitration. In mediation, a mediator helps both sides reach an agreement. The mediator doesn’t make a decision. It’s purely voluntary.

Mediation can be helpful if both parties are willing to negotiate. It’s often used before arbitration or trial.

Arbitration in Pennsylvania Under Personal Injury Law

Pennsylvania law allows arbitration as an alternative to trial. Many counties offer arbitration programs for claims below a certain dollar amount. For example, some courts use arbitration panels for cases under $50,000. In private arbitration, both sides must agree to the terms. We help our clients understand when arbitration may be required and what their rights are.

Still Unsure? Let’s Talk

Choosing between arbitration and settlement for your personal injury case isn’t always easy. Each of these alternative dispute resolution methods has pros and cons. Our attorneys can help you decide what’s right for your situation.

You don’t have to make the decision alone. We’ll explain your options clearly, protect your rights, and work toward the best outcome. If you’ve been injured and need advice about arbitration vs. settlement, contact Munley Law Personal Injury Attorneys for a free consultation.