Compulsory Arbitration is a mandatory program for disputes valued under $50,000. A court-appointed arbitrator reviews the case to decide a just resolution and award. Arbitration is intended to lower court costs for litigants and allow the Court to utilize judicial resources more effectively.
A claimant will typically start arbitration by sending a document known as a “request for arbitration” or a “notice to arbitrate” to its opponent.
Always get straight to the merits without berating the other side or whining about how badly it has treated you. Another threat to your credibility is the “kitchen sink” arbitration demand or a response that includes numerous claims or defenses that have little chance of succeeding.
Justice Court arbitrations and mediations are typically scheduled to last an hour and a half. That amount of time is usually sufficient to allow each side to present their case or defense, identify and question witnesses, and offer closing statements.
Settlement by agreement is the cheapest option and gives you the most control. Both mediation and arbitration are expensive, and arbitration is usually binding, so the ultimate decision is out of your control.
Arbitration is less formal than going to court, and you may represent yourself. However, you should keep in mind that arbitration is a legal proceeding that results in an award that is generally final and binding. Because your legal rights are involved, you may choose to consult with and be represented by an attorney.
In simple terms, arbitration is the out-of-court resolution of a disagreement between two commercial parties decided by an impartial third party, the arbitrator.