Can a Party Still Sue After Binding Arbitration?
Wednesday, March, 16, 2011
When parties agree to binding arbitration they need to realize what that actually means. Arbitration can be non-binding or binding depending on what the parties agreed upon. Both types of Arbitration will still involve a third party arbitration attorney to preside over the dispute. And, both types will apply to all various arbitration subjects such as divorce arbitration, medical disputes, work place conflict, personal injury arbitration, etc.
While binding arbitration is usually less time consuming and less expensive, it also means that you are basically giving up your right to sue in a court of law. The other factor to Binding is that it usually involves an arbitration attorney that is hired by the institution or party with whom you have the dispute with. A decision on a binding arbitration cannot be appealed or overturned unless there are rare circumstances present (fraud, bias or other inappropriate actions on the part of the arbitration attorney). After the decision is rendered, the case is over. The losing party will typically not be able to appeal, and if they do it can turn into a costly event that can take years to get resolved (not to mention the stress you will endure throughout this process.)
Finding a Beneficial Alternative to Litigation
Arbitration is a great solution for many individuals wanting to resolve a conflict or dispute in a timely and less costly manner. Depending on if you are the institution, or the party they have the dispute with, you might want to consider the rights you are giving up in a binding arbitration agreement. If you are unsure, as always it’s best to get legal advice before agreeing to anything you do not clearly understand.