Time and Cost Differences Between Arbitration and Litigation *
Employment claims take 650 to 720 days to be resolved in court, according to the National Center for State Courts. * The median time to resolve an employee dispute by arbitration is 104 days * the median cost of resolving employment disputes by arbitration is $870.
Sources: Consumer and Employment Arbitration in California: A Review of Website Data Posted Pursuant to Section 1281.96 of the Code of Civil Procedure California Dispute Resolution Institute, August 2004 http://www.mediate.com/cdri/cdri_print_Aug_6.pdf and Examining the Work of State Courts, (1999-2000) National Center for State Courts http://www.ncsconline.org/D_Research/csp/1999-2000_Files/1999-2000_Tort-Contract_Section.pdf
Outcome Differences Between Arbitration and Litigation: Arbitration & litigation final awards are essentially the same as court judgments * median monetary awards for successful claimants are greater in arbitration than in court—$100,000 in arbitration compared with $95,554 in court."
I suggest reading the full article. I have my doubts about arbitration but that doubt comes mostly from choice of law provisions where arbitration is to take place in a state far from Indiana. I am certain that works to the advantage of one of the parties -usually the one that is without the means to travel to the other state or hire out-of-state lawyers.
A few points that seem to escape the polling and studies, ADR does permit privacy to the parties denied by filing a lawsuit. I count that as an advantage for the business client.
From my experience in Indiana, there are two sources for delay:
- First, most Indiana courts have criminal jurisdiction. Criminal cases take priority over any civil case (there is the constitutional right to a speedy trial). Civil trials get bumped from the court's calendar to make way for a criminal trial.
- Second, there is the discovery phase of trial. I am sure discovery increases the cost of civil litigation. We lawyers like knowing everything we can about the opposition before trial begins - so we get documents, we do depositions, and we read and review all the information. Sometimes this phase becomes a sword rather than a shield as parties push depositions (which cost money due to paying court reporters) and dump documents in massive quantities. The movies A Civil Action and Class Action do a good job of showing this aspect of lawyering.
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