Executory Arbitration MEMO
Advantages and Disadvantages of Arbitration
Arbitration and litigation are both legal processes that can be used to resolve disputes. Arbitration is a process in which an impartial third party, called an arbitrator, hears both sides of the dispute and then makes a decision. Litigation, on the other hand, is a process in which the dispute is adjudicated by a judge or jury in a court of law.
There are several advantages and disadvantages of arbitration as compared with litigation. One advantage of arbitration is that it is typically faster than litigation. Another advantage is that it is usually less expensive than litigation making it a preferable approach for organizations. A disadvantage of arbitration, however, is that the arbitrators decision is final and binding, and there is no appeal process. Additionally, arbitration may not be well suited for complex disputes (Gough, 2021).
In contrast, one advantage of litigation is that it provides for an appeal if either party is dissatisfied with the outcome. Another advantage is that discovery rules apply in litigation, which means that each side has the opportunity to obtain evidence from the other side through the use of depositions and subpoenas. However, a disadvantage of litigation is that it can be very slow cases can take months or even years to resolve, which in turns makes arbitration more appealing by default. Additionally, litigation can be very expensive due to attorneys fees, court costs, and expert witness fees, which, again, puts another plus in the arbitration column since it is far less expensive (Gough, 2021).
When deciding whether to arbitrate or litigate a dispute, it is important to weigh the advantages and disadvantages of each option carefully. There may also be other alternative dispute resolution options worth considering, such as mediation or negotiation.
Executory Arbitration
Executory arbitration is a legal agreement between two parties...
…used to commit a crime or when disclosure is required by law.In the United States, arbitration is a common method of dispute resolution in the employment context. Under the Federal Arbitration Act, arbitration is generally considered to be a confidential process, and courts have routinely held that information disclosed during arbitration proceedings cannot be used in subsequent litigation between the same parties without the consent of all parties to the arbitration.
However, some courts have held that employees can disclose information discussed in arbitration hearings to other parties without the company's consent (Resnik et al., 2020), such that it may be used in subsequent disputes. These decisions are based on the premise that arbitration is a voluntary process, and employees should not be required to keep information confidential if they do not agree to do so. As a result, companies should be aware that information disclosed during arbitration proceedings may not necessarily be protected…
References
Gough, M. (2021). A Tale of Two Forums: Employment Discrimination Outcomes inArbitration and Litigation. ILR Review, 74(4), 875-897.
Resnik, J., Garlock, S., & Wang, A. J. (2020). Collective Preclusion and InaccessibleArbitration: Data, Non-Disclosure, and Public Knowledge. Lewis & Clark L. Rev., 24, 611.
Samuel, A. (2021). A Look Back at Where English and US Arbitration Law ComesFrom: The Long 18th Century. Alternatives to the High Cost of Litigation, 39(8), 125-128.
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