Med–Arb
It is hardly coincidence or lack of familiarity with the process of arbitration that has placed it at the bottom of our list of ADR techniques. A quick inspection of our web–site will disclose our expertise including conduct of one of the most expensive and longest running international arbitrations that the AAA had conducted until that time. So we are painfully aware that arbitration can, in many instances, be as long and costly as any litigation. Moreover, for the reasons discussed below under the "Arbitration" heading, it is often the fact that parties are pulled into specific arbitrations much against their will. So for these reasons, we have listed Med–Arb in front of it.
Med–Arb is a process that starts off as a mediation and, in the event that resolution can not be reached on one or more issues, the mediator changes hats and becomes an arbitrator. So the parties can be assured in advance of a final resolution of their dispute after a sympathetic hearing of all issues. Typically, Med–Arb has a higher settlement rate than ordinary mediation and costs far less than a full–blown arbitration.
Med–Arb had been frequently utilized and well regarded. But at some point it fell sharply out of favor in the US. However, the costs of both arbitration and litigation, as well as the extensive use of Med–Arb abroad, have caused many to take a new look at it. A sharp rebirth in popularity has followed and an increasing number of its advocates have urged its expanded use, one commentator calling it "the best of both worlds." It is particularly well–suited to many disputes, including especially international ones where a neutral forum and an enforceable judgment are central considerations. In some of these cases, before recommending straight arbitration to resolve a dispute and after a full explanation of the problems and criticisms leveled against Med–Arb in the past, we will recommend it to you and facilitate arrangements for it.
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