What is arbitration in business litigation?

| Feb 28, 2020 | business litigation, Firm News |

Litigation in the business world can be exhausting and expensive, which is not good for business owners who just want to get on with their vital operations and special projects. Although civil court is always an option, there are other ways to sort out disputes, including arbitration.

  • What is arbitration?

Arbitration in North Carolina may be ordered by the court and consists of an informal trial over which a neutral official presides. It is often a less expensive option if litigation would otherwise lead to a trial, as the costs are lower, and the duration may mean fewer expenses as well.

  • What sort of cases get sent to arbitration?

Some counties with an arbitration program may automatically send any cases for damages claiming less than $25,000 for arbitration. Some counties may not have a program at all, which would mean parties would have to work out a settlement or go to trial.

  • What if parties in a case don’t want to go to arbitration?

If both parties agree to forego arbitration, they can fill out a form and submit it to the court that ordered it. Otherwise, a judge may excuse one party unilaterally from it if one party files a motion with a good reason why arbitration should not apply to the case.

  • Can I have a lawyer during arbitration?

You are always entitled to an attorney to represent your interests in arbitration. Legal representation may be a good idea to help conclude arbitration or any form of business litigation with a result that works for you.