Arbitration Attorney in Shenandoah, Texas
What are the pros and cons of arbitration?
What are the pros and cons of arbitration?
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For many years, people said the best thing about arbitration was that it was faster and cheaper. That is no longer true, not just in arbitration in the United States but also worldwide. Having experienced arbitration in various parts of the world, including a case in Hong Kong, it has become evident that arbitration practices tend to emulate local legal systems.
Consequently, arbitration has inherited both the positive and negative aspects of civil court litigation. Instead of offering a notably cheaper and significantly faster process, it might now be somewhat faster but is not notably cheaper. Parties involved in arbitration must bear the cost of an arbitrator, which can amount to twenty or thirty thousand dollars. Additionally, there are the high filing fees paid to the Arbitration Association, ranging somewhere between one thousand and twelve thousand dollars. Furthermore, parties still have to pay their lawyers for all the work involved.
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The Woodlands, TX commercial litigation attorney Steven C. Earl discusses the pros and cons of arbitration. For many years, the primary advantage attributed to arbitration was its perceived speed and cost-effectiveness. However, this no longer holds true. Arbitration, regardless of the location (including experiences in Hong Kong), now tends to align with local legal practices, encompassing both positive and negative aspects of civil court litigation.
Consequently, rather than presenting a considerably cheaper and swifter process, arbitration often offers only a somewhat faster resolution but without a significant cost advantage. Parties engaged in arbitration bear the expenses related to an arbitrator, which can range from twenty to thirty thousand dollars, on top of substantial filing fees payable to the Arbitration Association, typically ranging from one to twelve thousand dollars. Additionally, they remain responsible for covering the legal fees incurred for their representation.
