What is Arbitration?
Arbitration is, “the submission for determination of disputed matter to private unofficial persons selected in manner provided by law or agreement.” (Black’s Law Dictionary 134. 4th Ed. Rev. 1968)
Arbitration is a form of Alternative Dispute Resolution, serving as an alternative to a jury trial. It involves a legal dispute being settled by a neutral third party to a plaintiff and defendant. That third party is known as an arbitrator. In arbitration, unlike other kinds of ADR, the arbitrator’s decision on a matter is final. In that way, arbitration is somewhat like a mini-court case. However, there are differences in the role of an arbitrator in arbitration and a judge in a court case. Arbitrators are chosen and agreed upon by both parties rather than appointed. They do not necessarily need to have legal expertise, although many do. It is also harder to appeal an arbitrator’s decision than it is to appeal a court’s decision.
Arbitration can either be voluntary or compulsory. It is voluntary when both parties freely agree to terms at the time of arbitration. It is compulsory when there is a prior agreement that may require one party to arbitrate and outlines the terms of arbitration. Compulsory arbitration is typically found in contracts. Some commonly observed benefits of arbitration are that it is a quicker, cheaper, and more private alternative to the court system. However, some cons are the limited appeal rights and potential for bias in individual arbitrators that come with arbitration.
More information about Arbitration
New York Man Awarded $1.5 Million After Debilitating Auto Accident
A man who suffered “a permanent, significant physical limitation” as the result of a serious automobile accident on Route 104 in Ontario, New York, has been awarded over $1.5 million by a Monroe County Supreme Court jury.
The man was stopped at a stop light in 2009 when he was hit from behind by another vehicle. He was diagnosed with acute lumbar spine injuries. The defendant‘s insurance company, State Farm Mutual Automobile Insurance Co., offered to settle the case for $5,000 and refused mediation or arbitration to settle the case, forcing the case into trial.
InsuranceNewsNet.com reports the man was awarded $1.25 million in past, present and future pain and suffering and loss of enjoyment of life, along with $321,250 in past and future medical expenses.
About Munley Law Personal Injury Attorneys
Munley Law is a Pennsylvania accident and injury law firm that represents car accident victims and their families throughout the state of Pennsylvania and the Northeast, […]
