Expert: Timmy Chou - 10/18/2008

Question
I built a new home 10/2003.  I signed an arbitration agreement with my contractor.  They misrepresented themselves as to their ability to build a custom home.  I hired a lawyer to help me recoup some of the money spent to fix their mistakes.  For 4 years this lawyer has tried to make it a court case.  Finally a judge said it had to go to arbitration because that's what I agreed to.  Now, $12,000.00 later, we went to arbitration and the arbitrator made a judgement in my favor for $15,625.  Needless to say I'm not happy with my lawyer.  Now he says the only way the judgement can be enforceable is for it to be confirmed in the Circuit Court by getting an "order of judgement".  Then a Certificate of Judgement has to be requested from the Clerk of the Court and recorded in Probate Court.  Is this necessary and, if so, can't I do it myself?  The arbitration is binding and noncontestable.  I feel my lawyer is only concerned with his pocketbook.

Answer
Thank you for your question!

As I always mention, Mediators act as neutral third parties to disputes and never "get involved" in judging the merits of conflict, but merely use special techniques to help the parties decide how to negotiate their own settlement.

The case you describe here is far too typical.  I am not a lawyer and cannot mediate this with you alone but I can respond to your question from my business consulting experience.

Well as you have seen, there is often little satisfaction from arbitration, and as you have also seen, there is little you can do about it once the deal is done.

Typically you do have to have the arbitrated decision entered as a judgment before you can execute on collection.  This all appears proper (though I am puzzled why a probate court should be involved??)  I am not a lawyer, but I suppose it may be possible to do this yourself, though unless you know what you are doing you could create more problems for yourself.  Its probably not a good idea.

It appears that you have the short end of the stick in this case unfortunately.  Try and get your money as quick as you can and then lick your wounds.

These are some ideas.  Feel free to follow up with additional questions.

For your information, the pros and cons of the types of dispute resolution methods follows.

GOOD LUCK!

Arbitration, Mediation, and Litigation

Arbitration: the referral of a dispute to one or more impartial persons for final and binding determination outside of the judicial system

Benefits of Arbitration:

  Confidential, no public record
  Limited exchange of documentation, information
  Quick, don't have to wait for a court date
  Arbitrators have expertise in the subject matter and are trained in conflict resolution
  Cheaper than litigation
  Preserves business relationships

Negatives of Arbitration

  It's a compromise, no %100 winner
  Complex arbitration can be costly
  If not satisfied, may litigate the arbitration procedure
  Poor results with an unskilled arbitrator
  Both parties must agree to cooperate in the process

Mediation: the process by which parties submit their dispute to a neutral third party (the mediator) who works with the parties to reach a settlement of their dispute.

Benefits of Mediation:

  Neutral mediator can objectively suggest alternatives not considered before
  Parties are directly engaged in negotiating the settlement
  Can be quicker than litigation
  Less costly than litigation
  Preserves business relationships
  85% of American Arbitration Association cases mediated find successful solutions

Negatives of Mediation

  may not reach a binding decision
  unskilled mediator

Litigation: using the judicial system to resolve disputes

Benefits of litigation:

  a clear winner and loser
  uses a prescribed set of procedures
  more predictable outcomes
  is final

Negatives of Litigation:

  waiting for court dates can do more harm
  usually more expensive than mediation and arbitration
  part of the public record