Dispute Resolution By Forced Arbitration

Alternative dispute resolution is a highly effective instrument in resolving conflict and attaining justice for individuals in relation to resource efficiency and timeliness through utilising mediation, conciliation and arbitration. Mediation is an exceptionally efficacious informal process of dispute resolution, usually confidential and conducted with the assistance of an

Although the arbitrator’s final awards are legally binding, an unhappy party of arbitration may still go to court under certain circumstances.  As mentioned by Fallon & McConnell, “unless one party protests that there was a gross injustice, collusion, or fraud, arbitration that is specified by a contract can be converted into a legal judgment.  This requires a petition to the appropriate court” (n.d., p. 388).  As expected, this can become costly for the person who is seeking to appeal.

Within twenty (20) days of the close of the hearing, the arbitrator shall issue a written decision and award (if any) stating the reasons for the decision and award. The decision shall be final and binding on both parties, their heirs, executors, administrators, successors and assigns, and may be entered and enforced in any court of competent jurisdiction. Proceedings to enforce, confirm, modify or vacate the decision will be controlled by and conducted in conformity with the Federal Arbitration Act 9 U.S.C. Sec. 1 et seq. or applicable state

I believe that many cases dealing with forced arbitration work in favor of the large corporations, rather than the employees or consumers with less money and power. Arbitrators are not obligated to follow the rules normally associated with civil procedure. Decisions can be made based on what they believe to be fair, rather than what the law would direct. If the employee or consumer disagrees with the result, they may be stuck with the decision and not be able to bring the claim to court. Also, arbitration costs have risen over the years and are now significantly higher than filing a lawsuit.

Jack and Jill, residents of Orlando, FL, had a nasty incident involving a hill, some water and a broken crown, in which both parties got hurt. Jack and Jill ended up suing each other in Florida state court. After a few months of nasty motion practice, Jill comes to your office and tells you that she's heard of this wonderful thing called mediation, under which she and Jack could be helped to reach a settlement. She has a few questions for you about mediation, all under Florida law:

In all too many instances, the promise of fair and inexpensive arbitration is not held for American consumers and employees, and companies use mandatory arbitration clauses as a creature to deflect accountability. Employers should take care to accept their counsel frequently review the enforceability of their employment agreements, and employees should take the time to learn and see the paperwork they sign when getting on to a new employer. Courts Offer More Access to Justice than does Mandatory Arbitration When companies can use arbitration to elude such lawsuits by suppressing claims they effectively render our laws toothless. I favor passage of the Arbitration Fairness Act, because I think it is the best way of protecting consumers and employees

the Arbitration and Conciliation Act, 1996 would apply only from the stage after reference and not before the stage of reference when options under section 89 CPC are given by the court and chosen by the parties.38 Even though section 89 CPC mandates courts to refer pending suits to any of the several ADR processes mentioned therein, there cannot be a reference to arbitration even under section 89 CPC, unless there is a mutual consent of all parties, for such reference. 39 Section 89 CPC also provides for reference of a dispute in a sub judice matter to conciliation. The statute However once the matter is referred to arbitration the matter permanently moves out of the realm of court proceedings and the suit stands disposed of at that very stage

The first Uniform Arbitration Act was adopted in 1925, which provided only for the irrevocability of agreements to arbitrate existing disputes. The Federal Arbitration Act was enacted by Congress in 1925 changing the common law. The Act stated that written agreements to arbitrate existing or future disputes were valid, irrevocable, and enforceable. As arbitration became more widely accepted, statutes and acts were continuously passed enforcing agreements to arbitrate. In 1955, the second Uniform Arbitration Act was passed. In addition to enforcing existing agreements to arbitrate, this Act made agreements to arbitrate future disputes irrevocable.

The Atlanta Braves negotiated into an agreement that was never put into writing with a pitcher named Greg. The agreement was that Greg would pitch for the team for five (5) years for twenty-five thousand dollars ($25,000.00). A day prior to the season beginning, the Savannah Savages, another team, offer Greg twenty-six thousand dollars ($26,000.00). Greg immediately accepts the Savages ' offer. The Braves therefore sued Greg for a breach of contract and agreed to arbitrate.

At times, conflict arises in organizations. As a result, firms ensure that dispute resolution mechanisms are in place to suppress the conflict and return operations and productivity to normal. Alternative

Generally, MNE’s prefer (and are indeed better off with) arbitration. However, and even though arbitration clauses are part of most of business contracts, the parties have to evaluate whether it is the most appropriate procedure, given the facts and circumstances.

Arbitration is an alternative legal dispute resolution process where instead of bringing your legal dispute to a court presided over by an elected judicial official, the dispute is less formally presented to an individual or a panel of arbitrators who are either appointed by the courts or employed by private arbitration firms. Mandatory arbitration clauses typically appear in government contracts, union contracts, consumer contracts and employment contracts. The arbitrators are more likely employees of private arbitration firms nominated or designated by one or more parties.

Additionally, it could be hard to construct an effective arbitration agreement especially in multi-party contracts. and that's why we should have careful consideration of arbitration clauses in a draft contract as defective or incomplete arbitration clauses may result multiple judicial proceedings in different national courts. (Born, 1994)

A conflict is a disagreement between two individuals. A conflict resolution is both individuals having an understanding and coming to an agreement on the conflict. The conflict can be resolved by both parties having a perspective of the other point of views. According to, Bisno, H. (1988)," Conflict, arguments, and change are natural parts of our lives, as well as the lives of every agency, organization, and nation. Conflict resolution is a way for two or more parties to find a peaceful solution to a disagreement among them. The disagreement may be personal, financial, political, or emotional. When a dispute arises, often the best course of action is negotiation to resolve the disagreement. The goals of negotiation is to produce a solution that all parties can agree to, work as quickly as possible to find this solution, and improve, not hurt, the relationship between the groups in conflict. Conflict resolution through negotiation can be good for all parties involved. Often, each side will get more by participating in negotiations than they would by walking away, and it can be a way for your group to get resources that might otherwise be out of reach."

In general, arbitration is a more formal method of alternative dispute resolution than mediation. "Arbitrators generally act similar to a judge and make decisions about evidence and give written opinions, which can be binding or non-binding" (Mediation versus arbitration versus litigation, 2008, Find Law). There may be one or more arbiters selected by both sides, or a third selected by the mutual arbiter. The methods deployed are often very similar to that of a court room. In contrast, mediation "is generally conducted before a single mediator who does not judge the case but helps facilitate a discussion and eventual resolution of the dispute" (Mediation versus arbitration versus litigation, 2008, Find Law). Mediation has a high success rate, but this may be due to the fact that parties which select mediation tend to be less polarized.