What is a post-dispute arbitration agreement?

A post-dispute arbitration agreement means that an issue has arisen that could lead to litigation, but the parties instead decide to make an agreement to submit the case to binding arbitration. A post dispute arbitration agreement is different from a pre-dispute arbitration agreement or arbitration clause found in a contract, because a pre-dispute agreement is used before and in case an issue arises. A post-dispute arbitration agreement is used afterward. This means when the parties sign one, they know for sure they are actually going to end up in arbitration.

Understanding a Post-Dispute Arbitration Agreement

Parties who are involved in some kind of legal dispute may choose to sign a post-dispute arbitration agreement for several reasons. For one, as a form of alternative dispute resolution, arbitration may be less contentious than courtroom litigation. The arbitration process often resolves disputes faster than litigation. Arbitration may also be less expensive than a full, protracted, drawn out court battle. Furthermore, and perhaps most importantly to some, when a dispute is arbitrated, private matters remain private instead of becoming court record.

A post-dispute arbitration agreement can also be made in many different types of situations. A divorcing couple may decide to sign a post-dispute arbitration agreement if they can’t work out a property settlement or custody division in their divorce. A company who is having a dispute with a customer or client may decide arbitration will be a more equitable way of resolving their issue and still be able to maintain a business relationship. Whatever the reason, once the parties agree and arbitrate an issue, the arbitrator’s decision is binding on them.

Case Studies: Exploring Post-Dispute Arbitration Agreements

Case Study 1: Streamlining Resolution in a Business Dispute

Two business partners find themselves embroiled in a complex dispute over the division of assets and profits. Aware of the potential costs and delays associated with traditional litigation, they decide to pursue arbitration through a post-dispute arbitration agreement.

By doing so, they aim to resolve the matter efficiently and confidentially. With the guidance of an experienced arbitrator, the parties present their arguments, and the arbitrator issues a binding decision that brings closure to the dispute, allowing both parties to move forward without unnecessary animosity.

Case Study 2: Safeguarding Privacy in a Divorce Settlement

A divorcing couple faces numerous disagreements, particularly concerning the division of property and custody arrangements. Instead of heading to court and making their private matters public record, they opt for a post-dispute arbitration agreement. This allows them to work with a neutral arbitrator in a more amicable setting.

By avoiding the adversarial nature of traditional divorce proceedings, the couple reaches a resolution that considers the interests of both parties and protects their privacy. They part ways with a sense of closure and minimal acrimony, focusing on the well-being of their children.

Case Study 3: Finding Equitable Resolution in Consumer-Company Dispute

A dissatisfied customer engages in a dispute with a company over faulty goods and inadequate customer service. Recognizing the benefits of arbitration in resolving their issue fairly and efficiently, both parties agree to a post-dispute arbitration agreement. They present their respective cases before an impartial arbitrator who carefully evaluates the evidence and arguments.

The arbitrator’s decision becomes binding, leading to an equitable resolution that preserves the business relationship while addressing the customer’s concerns. Thanks to the efficiency of arbitration, the matter is resolved without significant disruption to either party.

Getting Help

Before signing a post-dispute arbitration agreement, be sure to get proper legal advice from an attorney who can advise you on whether or not signing is the best course of action.