Arbitrationand litigation are the means of passing justice in an organization.The significance difference between the two methods is thatArbitration is the informal process that involves two parties indispute. The parties agree to work together in an attempt to solvethe conflict. Litigation, on the other hand, is a formal processconducted in a courtroom. In accessing the process, Bundy, Hero, &Hollander (2012) explains that arbitration is relatively quick, andcost process is relatively low compared to the litigation procedure. For instance, in civil litigation, attorneys tend to spend much timein gathering, moving a motion, and presenting their case. Inarbitration, the role of the conflicting parties is limited.
Inthe past, arbitration courts served mainly merchants. Over the year,the system has changed, and the tribunal is now helping entrepreneursas well[ CITATION Sco13 l 1033 ].For that matter, the proceedings before an arbitration tribunalshouldbe quick, foreseeable and of the high standard. In addition, theprocess should be harmonious. In other words, the proceedings mustaim at a dispute resolution that allows the parties to conducts thebusiness together[ CITATION Bun12 l 1033 ].The conflicting parties to arbitration who decides to settle theirdisagreements in a courtroom must, therefore, follow the steps below.
Step1: Identification of a statement of claims
Ifthe dispute arises in connection with the exercising of the contract,the parties must prepare a statement of applications where theyspecify their demand[ CITATION Bun12 l 1033 ].In this step, the parties should include supporting evidence, make areference to the arbitration clause and finally appoint thearbitrator. The arbitrator should be appointed by the people theytrust and have familiar with the issue.
Step2: Arbitration cost
Uponthe request of the court, the parties must pay both theadministration fee and the arbitration fee. The relevant fee paidwill influence the further steps that the tribunal may take includecourt secretariat`s service[ CITATION Sco13 l 1033 ].
Step3: Statement of counterclaims and appointment of the rest ofarbitrators
Afterreceiving the statement of claims, the party (s) is entitled tosubmit a statement of counterclaims and appoint the secondarbitrator. If the other party does not do as required, theNominating Committee will appoint the arbitrator instead[ CITATION Bun12 l 1033 ].
Justlike in civil courts, an arbitrator tribunal examines the case,analyzes the evidence and hears the witness during the trial. Theadvantage of the trial stage in arbitration over litigation is thatthere is no limitation of [ CITATION Sco13 l 1033 ].
Accordingto Bundy, Hero, & Hollander (2012), arbitration has existed inthe dominion of alternative employment dispute resolution. As such,some individuals have taken the issue with what they perceive to beinherently flawed structure. This criticism has been directed at thealmost mythical repeat player effect. It is undeniable that there areelements of the arbitration process that can be manipulated in a wayto create an advantage for those who know how to play the game. Suchidentification would appear to make the repeat player effectundeniable. However, the supreme courts have designed an unwaveringsupport for compulsory employment arbitration in its present form[ CITATION Sco13 l 1033 ].For that reason, the courts should not recognize the potential forimproper benefits for more active repeat players like the employers,who can force their employees to arbitrate claims as thenon-negotiable condition of employment.
Bundy, K., Hero, M., & Hollander, P. (2012). Choice of Law, Venue, and Jurisdiction, Arbitration v. Litigation. Int`l J. Franchising L , 8 (1), 2-10.
Scott, H. S., & Silverman, L. N. (2013). Stockholder Adoption of Mandatory Individual Arbitration for Stockholder Disputes. Harv. JL & Pub. Pol`y , 36 (1), 1187.