Can you go straight to arbitration?
Asked by: Prof. Kareem Collins MD | Last update: February 5, 2026Score: 5/5 (4 votes)
Yes, you can often go straight to arbitration, especially if your contract has a mandatory arbitration clause, which requires it; you initiate it by filing a demand with an arbitration organization like the AAA, but whether you must go to arbitration depends on your agreement, and sometimes you can challenge the clause to go to court instead.
Can you skip mediation and go straight to arbitration?
Unless the clause specifically prohibits mediation (which is rare), parties can always agree to try it—either before or during the arbitration process. In fact, many arbitration clauses include a “step” provision requiring the parties to try informal negotiation or mediation before filing for arbitration.
Can I go to arbitration without a lawyer?
Self-Represented Arbitration. If you decide to go through arbitration without a lawyer, whether as an individual or a small business owner, the American Arbitration Association® (AAA®) has compiled resources to help you understand and navigate the process.
Is it better to settle or go to arbitration?
Deciding between settling and arbitration depends on your goals: settling offers guaranteed, quicker resolution (often cheaper) but might mean less money; arbitration is faster and more private than court, with a neutral decision-maker, but can have high fees and lacks appeal rights, sometimes favoring the larger party like an insurer. Your best choice hinges on your tolerance for risk, need for privacy, desire for control, and the specifics of your case, so consulting a lawyer is crucial.
Is it worth going to arbitration?
In and of itself, arbitration is not a bad thing. The advantages are that it's speedy, done by someone who is an expert in your field and can be kept confidential if you wish. The downsides are that it can get pretty expensive since the parties have to pay for everything and that there could potentially be no appeal.
An unconscionable arbitration agreement
Is arbitration better than suing?
Arbitration is less formal than trial proceedings and is often more cost-effective and quicker. However, it is more formal than other forms of ADR, like negotiation and mediation. Arbitration may suit cases where the parties want to avoid time-consuming and expensive litigation.
What cannot be settled by arbitration?
Disputes that cannot be resolved through arbitration
- Criminal offences.
- Matrimonial disputes.
- Guardianship matters.
- Insolvency petitions.
- Testamentary suits.
- Trust disputes.
- Labour and industrial disputes.
- Tenancy and eviction matters governed by rent control statutes.
Who usually wins arbitration?
Win Rate: Consumers prevailed in 41.7% of arbitrations that terminated with awards compared to 29.3% of litigations that terminated with awards. Employees prevailed in 37.7% of arbitrations that terminated with awards compared to 10.8% of litigations that terminated with awards.
What is the downside of arbitration?
The disadvantages of arbitration
Both sides give up their right to an appeal, which means one party could end up feeling slighted. If the matter is complicated but the amount of money involved is modest, the arbitrator's fee may make arbitration uneconomical.
Should I have a lawyer for arbitration?
Arbitrators must be neutral and are selected based on their experience, subject-matter knowledge, and reputation for fairness. The parties usually have input in choosing the arbitrator. Having a lawyer on your side helps to ensure that the person selected is truly impartial and suited to the dispute.
Who pays the costs of arbitration?
Party arbitrator fees and expenses required by a pre-dispute arbitration agreement are to be paid entirely by the party selecting and retaining the party arbitrator.
What is the biggest problem of arbitration?
One of the biggest faults I see in arbitration is that it is strictly adversarial, meaning that there is a person, or in some cases a panel of people, whose job it is to make a decision. They must determine a winner in a dispute. Arbitration leaves no room for finding a solution to the problem.
What kind of cases go to arbitration?
Disputes involving joint ventures, construction projects, partnership differences, intellectual property rights, personal injury, product liabilities, professional liability, real estate securities, contract interpretation and performance, insurance claim and Banking & non-Banking transaction disputes fall within the ...
Which is faster, mediation or arbitration?
More than 80 percent of mediations result in a settlement, and in most cases the process is significantly faster and less costly than arbitration. Mediation does not impose a solution and it is not binding until the parties reach and sign a settlement agreement.
Can I still sue if I signed an arbitration agreement?
In some instances, you may be able to sue if you signed a valid arbitration agreement. While courts generally favor arbitration agreements, they will allow you to file a lawsuit if either you didn't understand your rights or your claims fall outside the arbitration provision's scope.
What are the 5 steps of arbitration?
There are five main stages to the arbitration process: (i) initial pleadings; (ii) panel selection; (iii) scheduling; (iv) discovery; (v) trial prep; and (vi) final hearing.
Is it better to go through arbitration or court?
Arbitration offers privacy, efficiency, and finality. In contrast, litigation provides broader discovery, appellate rights, and precedential development.
What is the success rate of arbitration?
247,327 consumer filings across 82 mass arbitrations, with a 69% settlement/withdrawal rate for cases closed in 2024 (only 1% ended in award).
Why do people not like arbitration?
Arbitration hearings are generally held in private which may be a positive to many. However, it is possible that this lack of transparency makes the process more likely to be biased, which may be problematic because arbitration decisions are also infrequently reviewed by the courts.
Is arbitration quicker than court?
Arbitration therefore provides certainty through a binding decision being made, whilst giving participants the options of avoiding a potentially unpleasant court experience. It is quicker and usually far cheaper than the court process and one that is private.
How to defend yourself in arbitration?
How do you protect yourself when you have one arbitrator who's hearing your dispute instead of a jury trial? One, you need to probably seek legal counsel if you're in a dispute like this. Either the lawyer can help you behind the scenes, guide you through the process or represent you at the arbitration.
What disputes cannot be arbitrated?
A wide range of contractual and non-contractual claim s can be referred to arbitration in this jurisdiction. This includes disputes involving intellectual property rights, competition disputes and statutory claims. However, criminal and family law matters cannot be referred to arbitration.
How long does arbitration take to settle?
Arbitration is similar to going to court, but faster, cheaper and less complex than litigation. If the case settles, an arbitration will last around one year. If the case goes to hearing, an arbitration typically takes 16 months.
What if I refuse arbitration?
Legal Consequences of Refusing to Participate in Arbitration
Loss of the right to present evidence. Tribunal accepting claimant submissions as fact. Cost orders against the non-participating party. A final award issued without their defense.
Can you settle before arbitration?
If the parties would like to discuss settlement, Arbitrators may, in their discretion, allow the parties to discuss settlement outside the presence of the Arbitrator for a short period of time prior to commencing the arbitration.