Arbitration v. Litigation-Which is More Effective?

 



Last week I arbitrated a case over Zoom.  The hearing lasted one hour.  The Claimant, a construction company, was owed high five figures.  They did not have an attorney’s fee clause in their contract.

The Respondent never answered the arbitration demand and did not appear.

The Claimant presented his damages and told me the history of the project.  I awarded him the full value of his claim plus interest and costs because they were provided for in his contract.

What if this had gone to litigation? 

He would have filed a lawsuit and paid for service on the defendant. 

He would have had to wait twenty days for him to file an answer.

He would have to file a request for default.

He would have to file a motion for default judgment.

Even if the claim were for a “sum certain,” the court would probably require a hearing on damages.

He will have to appear at the hearing and testify as to his damages.  If the court is busy that day, he may have to wait around for hours.

He will have to wait for a judgment.

He will have to ask for an execution.

To be fair, the Claimant will have to ask the court to confirm the arbitration award in order to obtain a judgment, but that is usually decided on the papers.

If you were owed money, what would you choose?

Parties should include arbitration clauses in their construction contracts because it allows them to have more control over the dispute resolution process.  When disputes arise, they should carefully consider the qualifications of potential arbitrators making their choice.  Choosing an arbitrator with specialized knowledge in the construction industry can help ensure that the dispute resolution process is efficient, effective, and fair.

Contact me to arbitrate or mediate your residential construction dispute.  Andrea Goldman agoldman@goldmanlg.com or 617-953-3760.

Comments

Anonymous said…
Samuel Nasat from Gaithersburg is the worst Contractor I've ever encountered. He's a con artist and a thief. He promises and doesn't deliver. DO NOT EVER USE HIM FOR ANYTHING. He cannot be trusted and is not bonded. Again DO NOT HIRE HIM you will regret it
12:01 AM
Post a Comment

Popular posts from this blog

Worker's Compensation Information Available Online At the Massachusetts Department of Labor Website

Image
Mark Paskell first posted this at his blog,  http://www.thecontractorcoachingpartnership.com/Blog-Contractor-Coaching--Construction-Business-Coach-EPA-RRP-Lead-Rule/ , but I think it is so important that I wanted to post here as well.  Make sure all of your contractors have worker's compensation policies if they have employees.  If not, you may be held accountable if someone gets injured on the job.  Bravo to the government of MA for making this information available to the public. Here is a brief excerpt from the Massachusetts Department of Labor website;                                       Patrick - Murray Administration Launches  Free Web-Based Tool Will help Public Verify if Businesses have Workers Compensation Insurance Policy Boston, MA - The Executive Office of Labor and Workforce Development (EOLWD)...
Read more

The Lead-Based Paint Renovation, Repair and Painting Law Goes Went Into Effect on April 22, 2010

Homeowners who are considering doing a renovation must know that if their homes were built prior to 1978, their contractors are required to follow certain procedures if they are going to disturb more than 6 interior square feet of paint or 20 exterior square feet of paint.  This law requires that the general contractor must become certified with the Environmental Protection Agency (EPA), and that the contractor himself take an eight-hour class in order to become a certified renovator and learn lead-safe practices that contain lead dust. Although the EPA claims that it will be doing a publicity campaign to inform homeowners about the Renovation, Repair and Painting Rule (RRP Rule), I have heard very little about it outside of construction circles.  So, I feel that it is important for me as a construction lawyer to educate the public about this rule. First of all, the preparation and education needed to comply with the law are going to cost the contractors more money.  T...
Read more