The author is an executive administrator in the Commercial Department of the AAA's New York Regional Office. He acknowledges the help of Florence Peterson, AAA senior vice president/ Northeast, in preparing this article.
Many parties use arbitration to speed up the resolution of a dispute or to save time and money. But there is another reason why some parties, especially huge companies and famous individuals sensitive to publicity, choose arbitration as an alternative to litigation-confidentiality. The author says confidentiality is inherent in arbitral proceedings, but some parties try to enhance or safeguard their right to privacy during arbitration by using certain measures such as a tailored agreement or an arbitration clause that requires confidentiality.