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The pros and cons of business arbitration

On Behalf of | Jun 3, 2019 | Business Litigation |

Arbitration can be a useful tool for business owners hoping to avoid litigation to resolve a dispute. At the Law Offices of Levi Williams, P.A., our goal is to assist Florida businesses in running smoothly and avoiding costly litigation. While we know that arbitration can serve a valuable purpose, we also know that, like other tools of law, there are negative as well as positive aspects to this dispute resolution method. You may be interested in learning about the different arbitration pros and cons.

As FindLaw explains, many business owners include arbitration clauses in their customer contracts because arbitrating a dispute may be faster and more cost-effective than court litigation. You and customers may also appreciate the impartial nature of choosing arbitrators to resolve a dispute, as well as confidentiality. Arbitration is also generally a simpler process than a courtroom trial and the results are usually final, which can protect businesses.

On the other hand, some cons of which you may want to be aware include the following:

  • The finality of an arbitration decision can be frustrating to the losing party, since an appeal is not usually possible.
  • It is not always cheaper or faster to arbitrate a dispute.
  • Some litigants prefer a jury trial to an arbitration team.

It may be worth noting that many business owners prefer arbitration, and the setbacks may mostly be disfavored by customers and clients. As such, you also want to consider options that not only protect your business, but also keep your customer base happy. As our page explains, writing dispute resolution methods in your contracts can be a complex matter requiring experienced counsel.


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