NCJ Number
96995
Date Published
1984
Length
6 pages
Annotation
This report summarizes a panel discussion of whether alternative dispute settlement is preferable to arbitration, whether arbitration clauses foster settlement, multistep dispute resolution clauses, the appropriateness of the standard American Arbitration Association clause for long-term agreements, and arbitration panels; also considered are institutional vs. ad hoc arbitration, discovery, and combining a minitrial with arbitration.
Abstract
Settling before an adjudicative process is determined to be preferable to arbitration; however, circumstances where imposed solutions are necessary are noted. Further, the use of arbitration clauses in contracts is recommended as a way of promoting settlement, and the possibility of including prearbitration procedures in some contracts is explored. The importance of selecting a dispute resolution clause appropriate for the types of disputes apt to arise is highlighted, as is the importance of considering whether the client may be a potential plaintiff or a potential defendant. Additionally, the need to distinguish between potential litigation in U.S. courts and litigation abroad is emphasized. Advantages and disadvantages of using a three-person arbitration panel are examined: three arbitrators are often preferred for large cases, because parties may be more inclined to accept a decision rendered by a panel than one given by a single arbitrator. Also, in disputes where a combination of expertise is required, a three-person panel may provide a broader understanding of the issues. Three arbitrators are also desirable in international transactions involving participants of more than one nationality. The lack of demand for ad hoc arbitration is noted, and the preference of Europeans and other foreign clients for ICC rules of arbitration is emphasized. Finally, arbitration's discouragement of discovery is noted, and the feasibility of combining a minitrial with an arbitration proceeding is considered.