At Jasne & Florio, L.L.P., in New York, we often help business owners with the issues that arise from contract disputes. You may wonder if you can reduce the risk of a dispute by including an arbitration clause in your business contracts.
Here are some facts about arbitration clauses to consider, according to Chron.com.
Going to court is an investment of time and money that you hope will pay out with a win for your business. If you insist on arbitration instead, you may spend less on fees and court costs, and it may take less time than waiting your turn on a long court docket.
If you take a case to court (or someone else takes you to court), there is no guarantee that the presiding judge will have any expertise in the matter. Usually, an arbitrator is an expert regarding the topic in question and will be able to understand and appreciate the weight of the evidence and testimony you present.
Even though a judge may not be an expert, if you feel he or she made an error in interpreting the law, you may be able to appeal the decision to a higher court. You will not have this recourse if the arbitrator makes a mistake or misinterprets facts in the dispute. You are likely to be stuck with whatever decision the arbitrator provides.
These and other factors may affect whether arbitration is a boon or a bust for your business, so it is important to think carefully before you insist that your contracts include this type of clause. More information about contract disputes and litigation is available on our webpage.