Should You Resolve Your Construction Dispute Through Arbitration in NYC?

There are many notable advantages to using arbitration instead of litigation in the context of a construction claim or in attempting to prevent such a claim. In the harsh business climate of NYC, this indicates an understanding of the different options available that could have a huge impact on your company's growth and future.

Briefly stated, arbitration is an alternative dispute resolution method in which all disputing parties agree to submit their dispute to a neutral third-party authorized to make a final and enforceable judgment. Here are five reasons why you should think about it when resolving a construction dispute in NYC:

Customization

You can customize the dispute resolution process to the specifics of the claim by specifying the place of arbitration as well as the number and specific technical qualifications of the arbitrator(s). For example, if you want someone with more construction experience in NYC as an arbitrator, you can choose a reputable construction litigation lawyer. This is all the more important in the construction industry, as you are unlikely to be appointed a judge with specific technical expertise.

Cost Savings

As a less formal process than litigation, the entire case preparation and information sharing can be expedited, saving time and resources for both you and your counsel. Furthermore, it is usually possible to present an entire dispute before the arbitrator in a one-day hearing — often with no need for court reporters or legal fees. This is an uncommon occurrence in litigation. Please remember that arbitration for larger and more complex construction disputes in NYC may not result in the same cost savings as less complex disputes.

Time Frame

When considering taking a construction dispute to trial, it is critical to evaluate the timeline in which it can be [realistically] resolved. Generally speaking, the time it takes for a construction dispute in NYC to be resolved is about two years and six months. This is far longer than the time frame expected in a corresponding arbitration case. According to a recent administrative study conducted by the American Arbitration Association for disputes under the AAA Commercial Arbitration Rules, the average construction dispute was resolved within ten months of filing.

Less Formal

It is safe to say that most people do not mistake the New York Supreme Court with the Ritz-Carlton. In fact, many people are frightened or anxious about having their dispute resolved in open court. However, with the arbitration, the hearing can be held in the conference room of your construction dispute attorney in NYC, making this dispute resolution approach far less stressful than litigation.

Recovery of Fees and Costs

The arbitrator may award the reimbursement of all fees and costs associated with submitting the dispute (including all paperwork and attorney’s fees) to either party — if it is properly disclosed and agreed upon in writing. This is an example of how some forethought and consultation with your NYC construction dispute attorney might make a future claim more advantageous to your company.

While arbitration is not available for every dispute, when it is, the various potential benefits make it well worth a look for your dispute resolution.

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Created on Nov 19th 2021 03:00. Viewed 150 times.

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