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Arbitration/ADR

About Arbitration/ADR

Arbitration and other alternative dispute resolution (ADR) processes can have advantages over filing lawsuits. Using litigation to resolve disputes is an expensive and time consuming process – taking years to move through the courts, often requiring expensive legal counsel and consuming significant amounts of time for defendants and plaintiffs alike.

To engage in arbitration, two parties involved in a dispute identify an agreed-upon individual to serve as a neutral third party to review the facts and circumstances of the dispute and to issue a ruling to resolve the conflict. The arbitrator is impartial, independent and knowledgeable about the law, typically a retired judge or experienced neutral attorney.

Virtually any type of dispute between private individuals or entities can be addressed by arbitration, including, for example, contract, real estate, employment, and tort disputes.

An agreement to enter into arbitration or other form of ADR can be set out at the beginning of a relationship between two parties through contract language specifying an ADR process in the event of a dispute. Such an up-front agreement can be advantageous, avoiding the dynamic of a dispute arising and then one party forcing the issue into the courts due to a perceived strategic benefit of litigation over ADR.

Voters Strongly Back Arbitration, Poll Shows

On July 15, 2008, ILR released a new analysis of California debt collection arbitration cases which provides the latest evidence that arbitration is a much better alternative for the consumer than the court system.

Read the analysis (PDF)
Read the press release

Sharon Kruse's Arbitration Story

In addition, a bipartisan survey released April 2, 2008 by ILR revealed that Americans strongly oppose legislation that would dramatically alter the way consumers and employees resolve disputes. ILR also released a detailed analysis of a Public Citizen report cited by opponents of arbitration.

Read the press release
View the press conference where the survey and analysis were released (video)
Anti-Arbitration Bill Will Wipe Out Benefits, Burden Courts, and Limit Recourse for Many Consumers (PDF)
View the survey results (PDF)
110th Congress: Trial Lawyer Assault on Arbitration Through Legislative Efforts/Earmarks (PDF)
Response to Public Citizen report (PDF)

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Featured Tools

Arbitration FAQs
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Arbitration Quotes
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Fact Sheet on Arbitration
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ILR Research


Tort Liability Costs for Small Business

Tort Liability Costs for Small BusinessILR's new study shows that small businesses shoulder a tremendous burden of the nation’s tort liability costs, having paid $105.4 billion in 2008.

Read the press release

Download the study (pdf)

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