How a civil dispute ends up in arbitration
Civil arbitration is a private process in which one or more neutral arbitrators decide a dispute instead of a judge or jury. It usually happens because a contract contains an arbitration clause, though parties can also agree to arbitrate after a dispute has already arisen. Common providers include the American Arbitration Association and JAMS, and the clause often names one and incorporates its rules. Courts in New York and under federal law generally enforce arbitration agreements, and a party that files in court despite a clause may face a motion to compel arbitration. Some claims, depending on the type and the parties, are treated differently by statute.
Costs, procedure, and what to prepare
Arbitration has its own costs: filing fees and the arbitrators' hourly or daily compensation, which the parties usually pay, unlike a judge's salary. Those costs can make arbitration more expensive than people expect, especially with a panel of three. The exchange of documents and testimony is often more limited than in court, which can save money but may also limit access to the other side's records. Prepare as you would for litigation: gather the contract, communications, financial records, and witness names, and organize them early, because hearings can be scheduled more quickly than trials. Confidentiality depends on the rules and any agreement, and it is not automatic in every case.
The award and the limited room for review
An arbitration award is generally final. Courts can confirm it as a judgment, and the grounds for setting it aside are narrow and generally involve serious problems with the process itself, such as an arbitrator acting beyond the authority the agreement gave. A mistake about the law or the facts is usually not enough. Deadlines to ask a court to confirm, modify, or vacate an award can be short. Ahead of any filing, we review the arbitration clause and the rules it adopts, estimate the likely costs, and discuss whether to proceed, negotiate, or challenge whether the dispute belongs in arbitration at all.
