Originally from:

AAA Handbook on Arbitration Practice - Second Edition

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CHAPTER 2

KEEPING ARBITRATION EASY,EFFICIENT,
ECONOMICAL AND USER FRIENDLY

Louis L. C. Chang

I. Introduction

Arbitration is used in a broad range of circumstances and it enjoys
exceptionally strong support by American courts. A general goal of
arbitration is to achieve fair and appropriate resolutions of disputes with
efficiency and economy. Some of the most important characteristics of
arbitration are:

• the decision maker is selected by the parties,
• the proceedings and award are private,
• the process is less formal than litigation,
• legal rules of procedure and evidence do not apply, and
• the process can be understood without formal legal training.

Arbitration is a consensual process that can be customized to suit
specific circumstances and relationships. Whether governed by the Federal
Arbitration Act, the 1955 version of the Uniform Arbitration Act, which
has been adopted by most states, or the revised version (RUAA), which
has been adopted by a handful of states (18 as of June, 2015), there are
opportunities to shape the process to the parties’ needs. Although one party
can take advantage of the other through process design, that is not
advisable since it invites legislatures to act to impose constraints on certain
types of arbitration, particularly those involving parties with little or no
bargaining power, such as consumers and employees.

II. Achieving Efficient Arbitration

Thus, supporters of arbitration should promote the fairest possible
process as well as one that is efficient, cost-effective and user-friendly.
To do this the following elements must be present.

A. Establish an Overall Spirit of Cooperation for the Arbitration

Arbitrators can set the tone for the arbitration by stating that they
expect civility and cooperation from the parties and their attorneys. They
should emphasize the differences between litigation and arbitration and
urge parties to avoid importing judicial procedures into the arbitration if
they want a swift but fair process. Arbitration honors substance over
form so that parties can obtain the process that they bargained for. If the
arbitration is overly adversarial and legalistic, it will probably take
longer to resolve. The goal should be to keep moving forward so that the
arbitrator can resolve all arbitrable issues in a timely, user friendly and
efficient manner.