What happens if an agreement is not reached at an arbitration hearing?
When an agreement is not reached during an arbitration hearing in Arkansas, the parties involved are free to continue working to reach a resolution. Generally, this involves further negotiations outside of the arbitration setting. Mediation, or another form of alternative dispute resolution (ADR), may also be utilized. If the parties remain at an impasse, litigation may be the only option. Litigation is an option of last resort, however, as it is time consuming and costly. Furthermore, the decision reached in litigation is predetermined by a judge or jury, rather than being flexible and mutually agreed upon by the parties. Although the decision made in arbitration may also be legally binding, the main difference is the parties are usually able to come to a resolution with much less time and cost than is required with litigation. In Arkansas, the court may also order the parties to attend a "status conference" to help the parties come to an agreement. During this conference, either the court or an administrative law judge may utilize a combination of settlement negotiation and ADR techniques to help the parties come to an agreement without the need for litigation. Thus, if an agreement is not reached at an arbitration hearing, the parties typically have several other options available to them, such as further negotiation or a status conference, in order to come to a resolution. If all else fails, however, litigation may be the only remaining option.
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