Arbitration is a method of resolving disagreements outside of court. Parties use it often in contract disputes employment disagreements and construction claims. Instead of a judge, a neutral third party is called an arbitrator who hears evidence and makes a binding decision. It offers a faster and often less expensive alternative to traditional litigation. However, before agreeing to arbitration, you should know the following things.
You usually waive your right to sue
When you agree to arbitration, you generally give up your right to file a lawsuit in court. The arbitrator’s decision is usually final and binding. Florida courts provide minimal grounds for appealing an arbitration award. You must understand you likely cannot pursue your case in court if you are unhappy with the outcome of the arbitration.
Your agreement determines the process
The specific rules and procedures governing the arbitration depend on your agreement. This agreement will dictate how the arbitrator is selected, the location of the hearings, and the types of evidence you can present. You should carefully review your agreement to understand precisely how the arbitration process will work. You and the opposing party both must comply with the agreement.
Discovery is limited
Compared to court litigation, arbitration typically involves more limited discovery. Discovery is the process of gathering information and evidence before a hearing. Arbitrators generally have the power to order some document production and depositions. The discovery available is usually much less extensive than what you would find in a court case. This can impact your ability to gather evidence and present your case thoroughly.
Arbitrators have broad authority
Arbitrators possess considerable power. They determine the admissibility of evidence, interpret contracts, and make final decisions on the merits of your case. Florida courts grant deference to an arbitrator’s decisions, assuming no evidence of fraud bias or misconduct exists. You must choose your arbitrator carefully because their decision can significantly impact your life.
You must understand the cost implications
Arbitration can be more affordable than litigation, but it still involves costs. You may need to pay various types of fees and other expenses. Arbitrator fees often get split between the parties unless the agreement provides otherwise. Understand these costs before agreeing to arbitrate a dispute.
Seeking support
Arbitration in Florida presents both advantages and disadvantages. Consider your circumstances and the specifics of your agreement before deciding to arbitrate. Seeking legal support may be a good idea before committing to arbitration. They can help you understand your rights and navigate the process effectively.