Are there any special considerations for commercial arbitration?
Yes, there are several special considerations that apply to commercial arbitration. In California, arbitration can be an important tool for resolving commercial disputes. However, parties to a commercial arbitration must pay close attention to the terms of their arbitration agreement. First, consider early resolution strategies such as mediation or mini-trials to avoid lengthy arbitration proceedings and expense. Mediation is a process by which the parties attempt to negotiate a settlement without the decision of a third party. A mini-trial is a shortened version of a full trial that is less expensive and can results in quicker resolution of the dispute. Second, consider the time and expense associated with arbitration. Under California law, the parties can agree to an arbitrator’s fee structure in advance, and, depending on the complexity of the case, it may be higher than typical court costs. The expense of discovery can also be significant. Finally, parties should consider whether they want a final and binding decision, or if they want to preserve the right to appeal the decision in a court. If parties wish to preserve their right to appeal, they must clearly state this in the arbitration agreement. Overall, parties engaging in commercial arbitration should take special considerations that may apply to their particular situation. By doing so, they can avoid the expense, time, and complexity of litigating a dispute in court.
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