A business or employment dispute can impact your operations and even threaten your continued success. A swift resolution can minimize the damage and keep your business on track.
Arbitration offers a streamlined, cost-effective alternative to traditional litigation when your business faces conflict. Unfortunately, it is shrouded in myth. It is time to learn the truth behind common misconceptions about business dispute arbitration.
Myth: Arbitrators misapply the law
Contrary to common belief, arbitrators are well-versed in many legal practice areas, ensuring they understand and adhere to the associated laws. However, they do have greater decision-making freedom than trial courts and are not held to every legal precedent.
Despite this freedom, arbitrators usually base their rulings on established law, even when not bound by precedent. The increased flexibility of arbitration often leads to a fair, legally-sound resolution.
Myth: Arbitration puts peace ahead of merit
The myth that arbitration favors peace over merit when resolving a dispute is widespread but largely untrue. Critics believe arbitration does not provide sufficient resolution because arbitrators prefer compromise over truth.
In reality, successful arbitration often hinges on its ability to deliver equitable, merit-based outcomes for the involved parties. Arbitrators have as much interest in fairness and merit as the involved parties.
Myth: You cannot enforce an arbitration award
Yet another misconception. Florida courts typically uphold arbitration awards unless they conflict with public policy or involve fraud.
To enforce an arbitration award, petition the circuit court to confirm the award, which then becomes a court-enforceable judgment. A business dispute representative can help with enforcement, ensuring the award is recognized and executed according to the law.
Before you dismiss the potential advantages of arbitration, learn more about it. You may discover that arbitration or another form of alternative dispute resolution (ADR) might be ideal for your dispute.