W
hat is Arbitration?Arbitration is a form of dispute resolution in which a third party receives evidence from the parties on both sides of a dispute and renders a binding decision. Arbitration is similar to litigation in that the arbitrator imposes a decision on the parties. The process is generally much less formal than litigation, however, and not subject to courtroom procedures such as rules of evidence or appeal. Any type of dispute may be arbitrated. From petty squabbles to international conflicts, arbitration can often produce quick, inexpensive and meaningful results for the parties.
Why Arbitrate?
Arbitration may be court connected or private. In Oregon's Fifteenth Judicial District, comprised of Curry and Coos Counties, all civil cases filed with the circuit court involving claims of $25,000 or under are subject to mandatory arbitration. This mandate also applies to dissolution of marriage cases which involve property only, and to small claims cases in which a defendant has requested a jury trial. Parties to such a suit will receive information from the court in the course of their litigation, instructing them to initiate an arbitration.
Arbitration may also be initiated directly by the parties, whether or not a lawsuit has been filed. In a private arbitration, the parties generally enter into an agreement to arbitrate. That agreement will control the ground rules for the arbitration, and often dictates whether the arbitrator’s decision is final or subject to appeal. Given the fact that parties to a lawsuit will be required to arbitrate in the course of their litigation, it may be cost effective for both sides to consider arbitration as an alternative to litigation at the outset.
Is Arbitration Final?
Disputes which are arbitrated under Oregon’s mandatory arbitration program are subject to limited appeal to the local circuit court. The losing party in such cases may obtain a "trial de novo" before a circuit court judge or a jury, meaning that the case would be tried as any other case, with both sides presenting evidence. If the appealing party does not improve his position after a trial, he becomes liable for all, or a portion of, the prevailing party’s costs and attorney’s fees incurred in trying the case.
Oregon law authorizes and provides for enforcement of private agreements to arbitrate. The law allows for flexibility in such agreements, and in the ground rules used in the actual arbitration. An arbitrator’s award may be filed with the court, and is then subject to limited exceptions from the losing party. Exceptions include fraud, bias, or misconduct on the part of the arbitrator. Barring any legitimate exceptions, the arbitrator’s award becomes a binding judgment after 20 days. That judgment is subject to formal appeal to higher courts only if a party has filed an objection to it during the 20-day waiting period.
Arranging an Arbitration
If you are interested in settling your dispute out of court, you or your lawyer should call my office to make arrangements. It is important to indicate in your initial call to my office that you are interested in my services as an arbitrator, and not my legal services. Because it is crucial that I remain impartial as an arbitrator, I avoid any direct personal contact with either of the parties prior to the actual arbitration session. My assistant will contact the other party or their attorney and make the necessary arrangements for initial session.
Arbitration Rules
For a complete listing of arbitration rules for Paul Pierson, click here.