The Woodlands, TX commercial litigation attorney Steven C. Earl discusses the pros and cons of arbitration. He notes that for many years, arbitration was widely regarded as faster and more cost-effective than traditional litigation. However, this perception is no longer accurate, both in the United States and internationally. Drawing on his experience with arbitration in various jurisdictions, including a case in Hong Kong, he observes that arbitration often mirrors the practices of local legal systems.

As a result, arbitration has inherited both the advantages and disadvantages of civil court litigation. While it may be somewhat quicker than traditional courts, it is no longer significantly cheaper. Parties must cover the cost of the arbitrator, which can range from twenty to thirty thousand dollars, in addition to substantial filing fees paid to the Arbitration Association, typically between one thousand and twelve thousand dollars. On top of these expenses, parties are still responsible for legal fees for all work performed by their attorneys.