We had three arbitrators billing us at $500 per hour, and the case was going nowhere with no end in sight… at least in court the judge is paid for by the taxpayers
General Counsel, Fortune 500 company
Next time you’re skimming through the boilerplate, take a moment to ponder that standard form dispute resolution clause. And if it talks about arbitration, you may want to read about Arbitration’s Fall From Grace before you seal the deal.
It’s not that arbitration is all bad. But its usefulness and popularity seems to depend very much on the circumstances, and who you’re talking to.
Arbitration pros include:
But there are also a few cons:
Despite the criticisms, the number of arbitration cases in the US doubled between 1997 and 2004 (to just under 160,000 cases, based on AAA figures), although this growth appears to have stalled in the last couple of years.