What is Arbitration?
- What is the difference between arbitration and a trial?
- How is arbitration decided?
- Is arbitration a good thing or a bad thing?
- Is it required or “binding”
- Do I need a lawyer?
Arbitration is an alternative to trial, and it is less formal and more abbreviated – Danny Glover
Arbitration in North Carolina: What is it?
Arbitration and “Binding Arbitration” is something we are seeing with more frequency in North Carolina, especially involving cases where people have agreed to the methodology of settling a claim.
That is sometimes done by contract. Arbitration is not required to be binding; but, companies often put provisions in contracts and agreements regarding arbitration. And often, they set things up to their advantage.
Binding Arbitration basically means there really isn’t an appeal. If you’ve agreed to binding arbitration, it’s very difficult, if not impossible to appeal that ruling.
North Carolina has legal provisions in the North Carolina General Statutes for Arbitration. Those can be found in: Article 45C of the Statutes. It’s referred to as the Revised Uniform Arbitration Act.
Is Arbitration Required in North Carolina Courts?
Yes and No.
IF the Court Orders Arbitration in North Carolina, you are required to participate; but, Arbitration is not always available in every county or Judicial District in North Carolina.
Here are the general rules about NC Arbitration:
- Counties that HAVE Court Ordered Arbitration
- Required in Every Civil Case
- Involving a Claim for $15,000 or less
- Required after Small Claims Court
- If appealed
- Involving Claims for Money
- IF the Court decides the case is Subject to Arbitration
- When the Magistrate’s Order / Ruling is appealed
What is the purpose of Court Ordered Arbitration in North Carolina?
More than anything, it helps people get a good idea of the value of the case or claims.
In North Carolina Arbitrations are handled by Lawyers specifically trained in the process of dispute settlement and mediation. While mediation is a legal term, the point is for people to work through or “mediate” their disputes.
Arbitration is different from Mediation. Arbitration is more like litigation, where there is a formal presentation of materials and decision. It is purposely intended to be more informal; but, that does not mean the effects of Arbitration are any different than the traditional process of civil litigation, discovery, and lawsuits.
An Arbitrator is a neutral Court official in North Carolina.
The Arbitration Hearing is in some ways like a trial. Each side to a dispute has the opportunity to tell their side of the story. Like a Jury Trial in North Carolina, each side is allowed to present evidence at an Arbitration.
They can also call witnesses and introduce documents for consideration.
Like a Judge or a Jury Trial in North Carolina, a decision is made. Normally that would be called a Verdict.
Whether it is a called a Jury Verdict or Ruling doesn’t much matter. There is a formal decision made.
Applying North Carolina Laws, a decision is made that determines “who won” and “who lost” in the dispute.
It’s important to realize Arbitration is just as important as traditional forms of litigation in North Carolina – Danny Glover
If you’re looking for an Outer Banks Car Accident Lawyer, Danny Glover is available for consultation. He’s experienced helping people with Car Accident Injuries, Semi-Truck Fatalities, and other catastrophic losses associated with negligence.
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Modified Transcript of “What is Arbitration” for the Hearing Impaired
Arbitration is more formal than mediation but less formal than trial, and there is one neutral person hired and paid for by all the different sides to the lawsuit.
Instead of a judge or a jury deciding your case, the arbitrator actually listens to the evidence typically in a more informal abbreviated way and then rules in the case.
Typically, the decision of the arbitrator is binding, meaning neither side can appeal. Sometimes arbitrators are retired judges, sometimes they are practicing attorneys, and sometimes they are simply professional arbitrators such as in construction cases.
Basically, arbitration is an alternative to trial, and it is less formal and more abbreviated.
I’m Danny Glover with the Glover Law Firm. If you have any questions about your car wreck, give me a call. It’s completely free. It’s confidential. I’ll be happy to talk to you.