What can be awarded in arbitration?

Asked by: Tyshawn Beahan  |  Last update: November 15, 2023
Score: 4.9/5 (9 votes)

While monetary damages are most often awarded, arbitrators frequently award equitable and other forms of relief, including specific performance, injunctive relief, consequential damages, liquidated damages, attorneys' fees and punitive damages.

What can an arbitrator award?

Although arbitration awards are characteristically an award of damages against a party, tribunals usually have a range of remedies that can form a part of the award. in most jurisdictions, the tribunal has the same power as a court to: order a party to do or refrain from doing something ("injunctive relief")

What can be the outcome of arbitration?

At the end of the case, the arbitrator makes an award. The arbitrator can decide that the other party should also pay your fee for registering the claim for arbitration. This has to be agreed when the arbitrator is appointed. You may also be entitled to any interest on the claim.

What are the three types of arbitration awards?

There are three types of arbitration awards: 1) standard awards; 2) reasoned awards; and 3) findings of fact and conclusions of law awards.

What kind of cases go to arbitration?

Arbitrators hear various types of cases, from small disputes between neighbors to million-dollar business conflicts. Unlike mediation, which is less effective in cases where questions of law represent the key elements of the dispute, arbitration is often used for complex legal disputes.

Arbitral Award

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What is the average arbitration settlement?

On average, consumers won more money through arbitration ($68,198) than in court ($57,285). Arbitration disputes were resolved on average faster (299 days) than in litigation (429 days).

How do you win an arbitration case?

How to Win an Arbitration
  1. Never Impair Your Credibility With the Arbitrator. ...
  2. Neither a Castigator Nor a Whiner Be. ...
  3. Throw Far-Fetched Claims and Defenses out the Window. ...
  4. Don't Waste Time and Money on Motions.

Is money awarded in arbitration?

With arbitration, an impartial arbitrator will decide who pays money, if any, and how much. An award acts as a judgment, and it is a legal determination of that dispute.

What is a standard arbitration award?

If there are non-monetary components of the claims or counterclaims, the arbitrator will provide a line item disposition of each non-monetary claim or counterclaim. A standard award is conclusory and typically does not provide any insight into how the arbitrator viewed the evidence, arguments and other presentations.

What are the most common types of arbitration?

There are two forms of arbitration: binding and nonbinding. Under binding arbitration, the parties agree to accept the arbitrator's decision as final, limiting their right to seek resolution of the dispute by a court.

Who does arbitration favor?

Arbitration Often Favors Large Companies and Employers

Unfortunately, arbitration often works in favor of the more powerful party such as a large company or employer.

What are the chances of winning arbitration?

Arbitration is often in a condition of employment. For example, an employee complained that she's been biased and unfair. For example, research by Colvin reveals employees win 36.4 percent of discrimination cases in federal court and 43.8 percent in state court, but only 21.4 percent in arbitration.

Who pays for arbitration?

The parties each pay their own costs to conduct their case. Parties will likely not encounter all of the above costs on every case, and the amount of these costs, and which party must pay them, is different depending on the case and the rules that apply.

Can you get punitive damages in arbitration?

Except as expressly allowed by the Statutory Claims as defined below, the arbitrator shall have no authority to award punitive or exemplary damages or any other amount for the purpose of imposing a penalty. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction.

How long does it take to get your money after arbitration?

This could take a couple of weeks as well. Then, usually about 10 to 12 weeks after arbitration was agreed upon, you will have an arbitration hearing. An award will then be paid, if it is applicable. It could take a couple more weeks for the check to be issued after the award has been ruled on.

What happens if you lose in arbitration?

If the party that lost the arbitration either chooses to accept the award or is also unsuccessful in the challenge, the award will need to be enforced. In many cases, the parties that agreed to arbitration will just follow the award and pay the money that was required.

Is arbitration a win win?

Where the goal of mediation is a “win-win” solution, arbitration results in a “win-lose” solution because one of the parties prevails just as would happen in a trial. Arbitrators decide on damage awards and, sometimes, on whether attorney's fees are warranted.

What is the burden of proof in arbitration hearing?

In order for the arbitrator to decide in favor of a party, the party must provide sufficient clear and convincing evidence to support their claims. This is known as meeting the “burden of proof.” The arbitrator will determine whether the party has met their burden of proof.

Can an arbitrator award costs?

The Arbitration Rules (the relevant section of which is reproduced below) do however allow the arbitrator to make costs awards. These can include determining that one party should pay the costs – including legal costs – of the other party. These costs awards will be enforceable through the court.

Do consumers ever win in arbitration?

The study found that in claims initiated by consumers: Consumers were more likely to win in arbitration (almost 42 percent) than in court (about 29 percent).

Can an arbitrator award damages?

The FAA permits an arbitrator to award punitive damages.

Do employers win in arbitration?

Employers are far more likely to win when they have arbitrated a case before, according to research by professor Lisa B. Bingham of Indiana University. When an employer is in arbitration for the first time, the employee wins 70% of the time.

What is one downside of arbitration?

There are also some disadvantages of arbitration to consider: No Appeals: The arbitration decision is final. There is no formal appeals process available. Even if one party feels that the outcome was unfair, unjust, or biased, they cannot appeal it.

How long does an arbitration take?

It usually takes several months for parties to do the necessary discovery and other work to prepare for an arbitration. The hearing itself will last anywhere from one day to a week or more. IS THE PROCESS CONFIDENTIAL? The proceedings are private and not open to the public.

Should I accept arbitration?

If you already have claims against your employer when you are asked to sign the agreement, you should absolutely talk to a lawyer before signing. After all, an arbitration agreement gives up your right to sue in court, and that right is much more valuable when you have an actual claim to make against your employer.