Arbitration or Litigation — Which Should You Choose?
By Randall J. GillaryA common topic during negotiations for a sales representation agreement is whether the parties should agree to binding arbitration to resolve any disputes rather than litigation in court. Sometimes a principal will request that the parties choose binding arbitration contending that arbitration is less expensive. This may or may not be true as I discuss below.
Some Benefits of Arbitration
The benefits of arbitration can include the following:
- A shorter docket. Arbitrations can often result in a resolution in 12 months compared to 24 to 30 months or more in many lawsuits.
- The parties have more control over the process.