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Arbitration

Arbitration

Overview

Arbitration allows businesses, consumers and employees an alternative means of dispute resolution, where parties agree to resolve their differences in front of a neutral and unbiased arbitrator rather than going through a lengthy and costly lawsuit in the courts. A recent study from the U.S. Chamber Institute for Legal Reform found that:

  • Employees are three times more likely to win in arbitration than in court
  • Employee-plaintiffs had better chances to win higher monetary award values
  • Arbitration is resolved in less time than in court

Trial lawyers are consistently pushing to change or take away the right to use arbitration because the opportunity for attorneys’ fees and a cut of the awards is much greater when litigation is lengthy. However, both the California and federal courts support the policies behind arbitration, and the Federal Arbitration Act pre-empts state laws that disfavor arbitration agreements. Arbitration is a critical means to reducing litigation that wastes the time and resources of consumers, the courts, and employers.

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