Commercial Arbitration


Commercial arbitration is used to settle business disputes outside of the courtroom. It can be useful for two-party disputes or when disputes involve multiple parties. Arbitration is similar to a trial in that each side presents its information and pleads its case, and a third-party makes a ruling and determines the outcome. The main differences are arbitration is less formal than litigation, it takes less time, and it is less of drain on financial and personnel resources.

In nearly every case, each side is represented by an attorney that has experience working in an arbitration setting. This ensures each case is presented in the best interest of the client, and that the arbitrator or arbitration panel understands the details of the dispute.

Everyone involved in a commercial arbitration must agree to settling the dispute in this manner. In some instances, the decision to arbitrate was made in advance and was part of the original agreement or contract between the disputing parties. Many contracts contain arbitration clauses that ensure the expense and frustration of litigation will be avoided if a dispute should arise.

In addition to determining whether or not a dispute will be settled through arbitration, an arbitration clause can also determine whether the decision of the arbitrator is final or if parties have the option of appealing. When the arbitrator’s decision is final it is known as binding arbitration and all parties must abide by the outcome of the arbitration hearings. Most commercial arbitrations are binding, though limited appeals might be permitted.

Arbitration can be a very effective tool for resolving commercial disputes. It is efficient and depending upon the way in which it is structured, it can provide protections for disputing parties that litigation would not allow. For instance, disputing parties can determine if arbitration will be confidential or public.

If you would like to know more about arbitration or you are looking for someone experienced with arbitration, Albert L. Jacobs, Jr. can help. Contact him at 480.418.0819 or by email at ajacobsaz@gmail.com.