Merits of arbitration for commercial disputes

Alternative dispute resolution mechanisms are methods that are employed to settle disputes without using the court process. The parties to a suit in ADR mechanisms usually necessitate the intervention of a third party who is called an arbitrator. This arbitrator is an independent party that has no interest in the subject matter and thereby bestowed responsibility of listening to both sides and thereafter drafting an appropriate decision. The decision of an arbitrator is final and binding to the parties just like a court’s ruling or judgment.

In unlv main campus arbitration has become popular due to the numerous benefits that will be articulated in this text. Most notably, the commercial sector has embraced arbitration as a primary method of dispute resolution. This means that parties in commercial agreements are now required by mandatory clauses to refer their issues to an arbitration forum before pursuing litigation. Litigation is often regarded as tedious, costly, divisive and volatile hence the need to adjudicate through a process that will preserve the relationship of the parties despite the ongoing differences.

The benefits of arbitration in commercial disputes are elucidated as follows;

Flexible process

The court process is beleaguered with procedures and technicalities that do not necessarily add value to the outcome of the case. In arbitration, parties are at liberty to determine the rules that will guide proceedings. The laws applicable are those that are mutually agreed upon by the parties. Flexibility and party control are demonstrated by various aspects like the liberty of the parties to determine the conduct of depositions, the length of the process, the scope of discovery and examination of witnesses.

Arbitrator selection

You cannot choose a judge, but you can choose an arbitrator. This gives the parties an invaluable leeway to choose a decision maker that is tailored to adjudicate on the subject matter. The parties will have the rare opportunity to select a decision maker based on qualifications, availability, temperament, impartiality, reputation, and experience. Judges are often picked randomly, and their expertise may not be applicable in the adjudication of the issues in question.


Most corporations and businesses prefer to settle and resolve commercial disputes without publication of matters that are confidential. However, court documents are public, and therefore it is preferable to seek ADR mechanisms which are held privately. Also, parties can preserve their trade secrets by arbitrarily sealing documents that are presented during the adjudication process.

Cost effective

Court and attorney fees are expenses that can be avoided through the arbitration process.