Expert: Timmy Chou - 9/17/2002

Question
Hi:

What type of records or databases exist that would show  past or pending arbitration cases?

In other words, as an example, who brought an arbitration action against McDonald's? Is the initial complaint a public record? Are the results of the dispute a public record?

Thanks for your help.

Chuck Clemens

Tel: 518 584 6995

Answer
Thank you for your question.

One of the advantages of arbitration for most clients is that the proceedings are confidential and do not become part of any permanent record.  The exception is court-ordered arbitration, but even then the court documents only that the arbitration was held and the outcome.  Most arbitrators will destroy any notes or documents as soon as the matter has been concluded.  Some individual arbitrators may keep track of the parties to cases for conflict of interest reasons.  You would have to survey all of the arbitrator firms to find out.

Some excellent information resources may be found at these professional organization sites:

American Bar Association:

http://www.abanet.org/dispute/home.html

American Arbitration Association:

http://www.adr.org/

Society of Professionals in Dispute Resolution (SPIDR)

http://www.spidr.org/



Feel free to follow up with any other questions.

Good luck to you!

Here are the basic benefits and disadvantages of current dispute resolution models.

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