Costs

• Lawsuits can take years and thousands of legal hours to be resolved. Arbitration limits the amount of information discovery between the parties to streamline the process. For example, arbitration will usually allow only limited document searches and fewer depositions of witnesses, while a lawsuit allows nearly unlimited discovery. If you already have all of the documentation and facts necessary to prove your case, arbitration might be a good choice. If you need to do some fact-finding, however, litigation might be a better option.
  
  

Privacy

• A lawsuit will normally destroy the relationship between parties. If there's a requirement for ongoing business, arbitration is a more amicable method of resolving disputes. The parties sit around a conference table rather than presenting in a courtroom, which often results in more candid and productive discussions. There also is no public record of an arbitration and the results are normally subject to a confidentiality agreement. Choosing arbitration can help protect the reputation of your company if you're involved in a dispute that could harm your business.
  
  

Finality

• The parties normally elect to make arbitration a binding procedure because leaving the possibility of a lawsuit open would eliminate the cost savings that arbitration offers. Thus, arbitration is typically binding and the decision of an arbitrator can be enforced by any court with the proper authority. Unlike with litigation, appeals aren't possible. Arbitration can be unpredictable, so the parties must understand that an arbitration proceeding is a one-shot deal and be willing to live with the result.
  
  

No Jury

• If having your case presented to a jury is important, arbitration isn't a good choice. Arbitration is decided by one or maybe a few experts who are mutually chosen by the parties. Where a judge might be required by law to make a particular decision, an arbitrator may be subject to bias or tend to disregard legal principles to achieve what he believes to be a fair and equitable result. It's possible to have an ironclad legal case and lose in an arbitration proceeding.