Fact Or Fiction? Dispelling Four Common Arbitration Myths

In recent years, arbitration has grown in popularity as a mechanism for resolving disputes, but it remains misunderstood in several key respects. In this blog post, we try to dispel some of the most common myths about arbitration.

1. Arbitration is only for large, high-value disputes

Almost any type of dispute can be submitted to arbitration - it comes down to an assessment by the parties or their counsel as to whether arbitration is desirable in the context of the nature of the particular dispute and the parties' needs and priorities. Even relatively low-value commercial contracts can contain arbitration clauses. Where a dispute is on the lower end of the value spectrum, the arbitration can accommodate that: for example, it may be that the parties will benefit from more streamlined procedures and a less senior decision-maker. There is a growing pool of arbitrators who are less senior than the retired judges and senior law firm partners that many think of as