Frequently Asked Questions

How can arbitration procedures be tailored to fit the specific needs and requirements of a dispute?

Arbitration procedures can be customized to meet the unique needs and requirements of a specific dispute. This flexibility is one of the key advantages of arbitration over traditional court proceedings. The parties involved in the dispute have the ability to agree on certain limitations before the arbitration proceedings begin. For instance, they can set a maximum and minimum limit for the total damages allowed. They can also specify the types of damages that can be awarded, such as punitive damages and attorney fees. In addition to these, parties can implement unique rules, such as "baseball" arbitration, which is a form of arbitration where each party submits a proposed final offer, and the arbitrator must choose one of the offers without modification. This encourages parties to submit reasonable offers, as an extreme offer is less likely to be chosen by the arbitrator. Moreover, the parties can hand-pick the arbitrator based on their expertise, temperament, and other qualifying characteristics. This ensures that the arbitrator is well-versed in the specific field of the dispute, thereby increasing the likelihood of a fair and informed decision.