{"id":886621,"date":"2016-01-27T10:32:43","date_gmt":"2016-01-27T17:32:43","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=886621"},"modified":"2016-01-27T10:32:43","modified_gmt":"2016-01-27T17:32:43","slug":"to-be-or-not-to-be-in-arbitration-that-is-the-question","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/to-be-or-not-to-be-in-arbitration-that-is-the-question\/","title":{"rendered":"To Be or Not to Be in Arbitration? That is the Question"},"content":{"rendered":"<p>Tony Byler and Daniel E. Fierstein | Construction Law Signal | January 14, 2016<\/p>\n<p><a href=\"https:\/\/www.myconstructionexpert.com\/blog\/contract-cannot-eliminate-right-to-vacate-or-modify-arbitration-award\/\" target=\"_blank\">Arbitration<\/a> has become a very common and effective way to resolve <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/how-to-contain-construction-disputes\/\" target=\"_blank\">construction disputes<\/a> in lieu of traditional litigation, and it is easy to understand why:<\/p>\n<ul>\n<li>The parties can select arbitrators with construction expertise who speak their language and are more likely to understand complex construction issues than a general court of law.<\/li>\n<li><a href=\"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-a-comparison-of-the-pros-and-cons\/\" target=\"_blank\">Arbitrations<\/a> are characteristically speedier from inception to award.<\/li>\n<li>Discovery (the parties\u2019 exchange of information and taking of depositions) is often more truncated and can, therefore, be less costly.<\/li>\n<li>Arbitrator awards are typically binding and not normally subject to an appeals process that tends to add more time and cost to the outcome.<\/li>\n<\/ul>\n<p><a href=\"http:\/\/www.constructionlawsignal.com\/wp-content\/uploads\/sites\/345\/2016\/01\/QA.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-thumbnail wp-image-3195\" src=\"http:\/\/www.constructionlawsignal.com\/wp-content\/uploads\/sites\/345\/2016\/01\/QA-150x150.jpg\" alt=\"\" width=\"150\" height=\"150\" \/><\/a>We would be remiss, however, if we did not mention that arbitration is not for everyone.\u00a0 Parties are often required to pay filing and other administrative fees that are considerably more expensive than the cost of court filings, and they must also pay the arbitrators, who typically bill by the hour (feel free to insert your own generic lawyer joke here).\u00a0 In the construction context, we find that owners, developers, and public entities often will elect litigation over arbitration.<\/p>\n<p>The finality of the award cannot be overstated.\u00a0 This <strong><a href=\"http:\/\/www.lexology.com\/library\/detail.aspx?g=0a297a87-c5ea-470f-b272-5317a8ddb1b1&amp;utm_source=Lexology+Daily+Newsfeed&amp;utm_medium=HTML+email+-+Body+-+General+section&amp;utm_campaign=Lexology+subscriber+daily+feed&amp;utm_content=Lexology+Daily+Newsfeed+2015-11-30&amp;utm_term\">article<\/a><\/strong> about a recent federal court decision \u2013 in which a party discovered after the award that one of the arbitrators failed to disclose a number of serious charges that included the unauthorized practice of law \u2013 drives the point home. \u00a0Under the Federal Arbitration Act, courts may only vacate an <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-rulings-are-final-even-when-the-arbitrators-get-it-wrong-on-the-law\/\" target=\"_blank\">arbitration award<\/a> under very limited and extreme circumstances:<\/p>\n<ul>\n<li>the award was obtained by corruption, fraud, or undue means;<\/li>\n<li>there was evident partiality or corruption in any of the arbitrators;<\/li>\n<li>the arbitrators were guilty of misconduct for refusing to hear evidence relevant and material to the dispute; or<\/li>\n<li>the arbitrators exceeded or imperfectly executed their powers.<\/li>\n<\/ul>\n<p>In other words, a court will not disrupt an arbitration award simply because the arbitrators may have \u201cgotten it wrong.\u201d<\/p>\n<p>It can be strange and counterintuitive to think about how a dispute should be resolved when signing a contract.\u00a0 Most parties to a construction contract are&#8230;<\/p>\n<p><a href=\"http:\/\/www.constructionlawsignal.com\/by-subject\/contract\/to-be-or-not-to-be-in-arbitration-that-is-the-question\/\" target=\"_blank\">To finish reading this article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tony Byler and Daniel E. Fierstein | Construction Law Signal | January 14, 2016 Arbitration has become a very common and effective way to resolve construction disputes in lieu of traditional litigation, and it is easy to understand why: The parties can select arbitrators with construction expertise who speak their language and are more likely&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/to-be-or-not-to-be-in-arbitration-that-is-the-question\/\">Continue reading <span class=\"screen-reader-text\">To Be or Not to Be in Arbitration? That is the Question<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[41,164],"tags":[42,204],"class_list":["post-886621","post","type-post","status-publish","format-standard","hentry","category-arbitration","category-construction-dispute","tag-arbitration-2","tag-construction-disputes","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>To Be or Not to Be in Arbitration? 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