What Is Arbitration?

Some people think that all personal injury cases have to go to trial. However, the truth is that only a small percentage of these lawsuits will ever be heard in court. Most personal injury claims are dealt with in other ways, such as settlements and alternative dispute resolutions. Arbitration, often viewed as a last resort before a case goes to trial, is a type of alternative dispute resolution (ADR). Both parties mutually agree to have a neutral decision-maker, called an arbitrator, provide a resolution. Like a judge, an arbitrator objectively listens to both sides of a case before reaching their decision.  

What Happens At An Arbitration?

Arbitration usually takes place inside a conference room at the Superior Court, where the plaintiff’s lawsuit was filed. While attending an arbitration is much less formal than going to court, the procedure is structured like a mini-trial. Lawyers for the plaintiff and defendant submit case packets to the arbitrator, which usually include police reports, photographs, hospital records, and statements from expert witnesses. During the private hearing, both parties present evidence to demonstrate what occurred to cause the accident and resulting injuries. Each side attempts to clarify its version of events through opening statements, witness testimonies, cross-examinations, and closing arguments. After carefully examining and reviewing all of the facts, the arbitrator will determine liability, if the plaintiff is entitled to receive compensation, and the total number of damages awarded. The arbitrator’s final written decision is typically issued within a few business days. The decision can be binding or non-binding, depending on what the plaintiff and defendant agreed upon beforehand. When binding, the decision is considered final and entered as a judgment.  

Advantages And Disadvantages Of Arbitration

Some of the benefits to arbitrating a personal injury case include:

1. Quicker Outcomes: Arbitration avoids backlogged courtrooms, and resolutions can be reached much faster; 
2. Privacy: These private hearings happen behind closed doors, and the terms are usually confidential;
3. Less Costly: Resolving a claim through arbitration is generally far less expensive; than going to trial;
4. Offers Flexibility: Scheduling an arbitration can help ease the burden of various court proceedings and meeting other deadlines; and 
5. Helps Avoid Hostility: Both parties are strongly incentivized to work together and reach a resolution.  

A few drawbacks of resolving a lawsuit through arbitration include:

1. Limited Appealability: If the arbitration is binding, the decision cannot be appealed like a court verdict;
2. Being Forced into It: Some arbitration clauses in insurance contracts leave little room for negotiations;
3. Questionable Objectivity: When an arbitrator is selected based on their prior decisions, this could favor an insurance company; and  
4. Increasing Costs: The costs of hiring an arbitrator have been steadily climbing, raising the question of affordability.

Contact The Dietrich Law Firm P.C. For Your Complimentary Consultation

Jed Dietrich, Esq., acclaimed as one of America’s Top 100 Personal Injury Attorneys, and his elite team will do everything possible to obtain the best result for your case. Our battle-tested team has successfully litigated countless cases through arbitration, including a $750,000 arbitration award for a 38-year-old man injured in a Rochester, New York rear-end car accident. To determine whether arbitration is suitable for you, you must discuss the particulars of your case with a highly qualified injury lawyer. Please do not hesitate to call our veteran attorneys for further information regarding alternative dispute resolution. The Dietrich Law Firm P.C.’s zealous team is here for you 24/7 by simply dialing 716-839-3939.