It is not unusual for various types of business contracts to have arbitration clauses included. Over the years, many Minnesota business owners and those elsewhere have found arbitration an overall more attractive option for addressing business disputes than litigation. However, arbitration does not always suit a specific conflict, which is why it may be worthwhile to consider other options.
One reason that arbitration may not always be the most favorable option is that the decisions made by the arbitrator can be challenging to appeal or reverse. This may not be an issue for business owners who believe that they will win their case, but the chance does exist that a company will face an unfavorable outcome. After all, the arbitrator may not see the evidence in the same light that the business owner does.
Some reasons that overturning an arbitrator’s decision is difficult include the following:
- Arbitration proceedings are typically not recorded, meaning everything in the sessions remains private.
- Because there is no formal record of what occurred, arguing against certain details that took place during arbitration could difficult depending on the way it is remembered by those involved.
- There is little recourse for having an arbitrator’s decision reviewed by a court.
- If a plausible basis exists for the arbitrator’s decision, the court cannot reverse it.
Though arbitration can see a quicker decision made by the arbitrator than having to wait for the court to come to a decision, it may not always be worth the risks. Minnesota business owners may want to think carefully before agreeing to an arbitration clause and before choosing this method of conflict resolution for themselves. Thoroughly reviewing their options for handling business disputes before making a decision may prove beneficial.