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What is Arbitration? 

Arbitration is the submission of a claim or dispute to a neutral, non-judicial third party (the arbitrator) who renders a binding decision (award) and resolves the issue in controversy.  The arbitrator’s award is filed with a court which will enforce it if needed.

When is Arbitration Appropriate?  

It is common for businesses to require customers, employees and subcontractors to sign an agreement to arbitrate certain disputes in advance of litigation.  The company’s reasoning is that arbitration is a better venue than court.  It is better because often the arbitrator, or panel of arbitrators, is very familiar with nature of the controversy.  

For example, a high technology manufacturer of silicon microprocessors could enter into a dispute with a subcontractor and if the case were to go to court, the judge and jury might find the testimonies and information way beyond their understanding.  Therefore arbitration might be more appropriate than court.

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Kauai Arbitration & Mediation, LLC  PO Box 3281 Lihue, Kauai, HI 96766             T 808 639 3150 or EMAIL US