Arbitration & ADR

Arbitration is a less formal alternative to litigation in which an arbitrator or a panel of arbitrators listen to the positions of the disputing parties in a relatively informal proceeding and then issue a decision on how the situation should be resolved.  With mediation, a disinterested third party tries to help the interested parties reach a settlement that resolves their dispute.  ADR is an umbrella term encompassing arbitration, mediation and other alternatives to formal legal proceedings.

At Weltman & Moskowitz, our approach to dispute resolution encompasses the design of innovative systems to manage disputes.  The approach embraces a full range of resolution options, including negotiation, litigation, arbitration, mediation and customized ADR alternatives.

Where there is need for an injunction, to protect a strategic interest, to defend a frivolous lawsuit, or to establish a precedent, litigation may well be the best choice – and we are proud of our record in court.  At the same time, for many business disputes, ADR can be an enormously powerful tool to resolve disputes early, cost-effectively and fairly.  The process of mediation, in particular, offers creative business solutions not available in either litigation or arbitration.
To read more about mediation, check out our Mediation page [create link].
To learn more about arbitration, read on.

ARBITRATION

• Arbitration is binding and final.  The arbitrator considers evidence presented by each side and renders a decision regarding the value of the case.
• Arbitration is streamlined process to settle disputes and as such does not entail comprehensive discovery.  Written documentation such as depositions, expert reports, written estimates of value, damage to, cost of repair of, or loss of property; affidavits, etc. are acceptable as evidence.  The goal is efficient and economical resolution to the dispute.
• In some cases, high/low parameters are negotiated prior to the hearing for a specific range of the award.  The parties must agree to the maximum and minimum, which are written into the Arbitration contract.  These high/lows are not disclosed to the Arbitrator.  If the Arbitrator’s decision is within the set parameters, the award stands.  If the decision exceeds the high parameter, the high dollar parameter is awarded.  Conversely, if the decision falls below the low parameter, the low dollar parameter is awarded.  This allows for a guaranteed resolution of a dispute and minimizes risk.

Procedure of an Arbitration

Once parties verbally agree to arbitrate, a submission form is jointly executed.  The form includes such pertinent information as names, addresses and telephone numbers of each party to the case, as well as, case file numbers where applicable.  Also indicated is whether the hearing is to determine liability, damages, or both.  In addition, the form notes any specific agreements between the parties.  In the case of high/low arbitration, parameters are included.  After the contracts are signed and received, all parties participate in the selection of the Arbitrator, date, time, and location of the hearing.  All arbitrations are subject to NAM’s Rules and Procedures.

At least ten days prior to the hearing, each party shall send to the other parties and NAM any pre-hearing papers including a list of documents to be submitted and witnesses to be presented.  NAM will forward all papers to the Arbitrator.  At the Arbitration, the parties have the opportunity to present their case in a manner similar to a non-jury trial in the public court system.  Each side may present witnesses and exhibits and are permitted cross-examination and closing arguments.  After deliberation, the Arbitrator will submit the decision to NAM within three weeks of the hearing.  NAM, in turn, will forward to all parties.

Conclusion

Arbitration is less formal than litigation, but more formal than Mediation.  When the process is concluded the case is resolved.  Most importantly, the time and cost savings are too significant to ignore.

For further information on this topic or to discuss your case, please contact Richard E. Weltman or Michael L. Moskowitz by telephone, fax or email.

For further information on this topic or to discuss your case, please contact Richard E. Weltman or Michael L. Moskowitz by telephone, fax or email.

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