| Type | Cost | Timeline | Notes |
|---|---|---|---|
| Consumer dispute (<$75K) | $2,000–$8,000 | 2-4 months | Mandatory in many contracts |
| Employment dispute | $5,000–$20,000 | 3-6 months | Often required by employer |
| Commercial ($75K-$500K) | $15,000–$50,000 | 4-12 months | AAA or JAMS |
| Complex commercial ($500K+) | $50,000–$200,000+ | 6-18 months | Panel of 3 arbitrators common |
Arbitration is a private alternative to court where a neutral third party (arbitrator) hears both sides and makes a binding decision. It's faster and often cheaper than litigation, but you give up the right to a jury trial and have very limited appeal rights. Many contracts now include mandatory arbitration clauses, meaning you may not have a choice. If you do have a choice, arbitration is generally better for smaller disputes ($10K-$200K) while court may be better for very large claims or when you want to set legal precedent.
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