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Is arbitration better than litigation?

International commercial disputes are a different can of worms compared to domestic issues. International business owners based in Georgia, like you, have probably dealt with your fair share of inter-country crises that need to be handled quickly. There are many discussions about whether or not arbitration is better to handle these matters, but what do the facts say?

According to the American Arbitration Society, arbitration is starting to see a rise in commonality and is generally the preferred method for solving international commercial disputes. There are many reasons for its upswing in popularity, including:

  •          Fairness
  •          Efficiency
  •          Flexibility
  •          Satisfaction

The business community has something of a reluctance regarding arbitration, as litigation is the traditional method of handling business disputes both domestically and internationally. There are also some downsides to arbitration. For example, there are certain limitations that are placed on arbitration that can make it difficult for you to get what you want out of a situation, and inconsistent agreements can be a real problem.

But the benefits are starting to outweigh the potential negatives. If you are looking for quick and fair ways to get a dispute resolved, arbitration is the way to go. You should have specific provisions included and be very detailed in what you’re after so there can be as little room for mistake or cheating as possible. You should also avoid being too detailed when looking for an arbitrator in order to keep your selection more open.

In the end it’s a case by case sort of scenario where you need to judge the needs of your business. Arbitration may work better for you, but you may also find the more traditional litigation to suit your purposes best.

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