What are the advantages of resolving claims through arbitration?
The primary advantage is cost. Arbitration is designed to be a streamlined and effective process taking several months versus the court system, which can go on for several years. Arbitration often involves less discovery, the filing of only a few pleadings, and lower attorney fees. Also, the employer saves time. Many court systems face very clogged dockets. In theory, arbitration can move quickly. Another advantage is privacy. When a case goes to court, it is a matter of public record and the media has the right to be present. Arbitration goes on privately behind closed doors, outside of the public eye, and can help a company avoid unwanted publicity. Another advantage is predictability. Awards tend to be more practical than what a jury might award, as arbitrators are typically attorneys or hired judges. Are there pitfalls in going to arbitration instead of court? Arbitration can avoid the risk of a runaway jury award, but at the outset, the employer could spend a lot of money just try
