After a car accident, most people assume that settlements are reached either by negotiation or lawsuit. As your Bronx car accident lawyer, we are here to tell you that is not the case. In certain situations, parties can choose arbitration to settle their disputes. But this raises the question, is arbitration better than the standard methods of settlement? In this post, we’ll be looking into how arbitration can apply in an NYC car accident case, as well as the potential advantages and risks connected with it.
What is Arbitration?
Arbitration is an Alternate Dispute Resolution (ADR) process where the parties to the dispute agree to present their case to a neutral third party, known as the arbitrator. As an ADR method, arbitration happens outside the New York court system and, depending on the arbitration agreement, can be binding or non-binding on the parties. You will most likely find a mandatory arbitration clause included in your insurance policy.
When Do You Need to Go for Arbitration in NYC Car Accident Cases?
Arbitration can be voluntary or mandatory. You may need to face mandatory arbitration when it is included as part of your insurance policy. When you sign off on your insurance policy, you agree that should any dispute arise in connection to the insurance policy, you will first take the matter to arbitration before pursuing any further legal action.
However, both parties can freely consent to arbitration. Such a decision is taken when both sides want to avoid the dispute being entered into public records, when you are facing a small claim where a trial is not the most cost-effective solution, and when both sides want to settle the matter quickly. Whatever your choice, Alex Yadgarov & Associates is here to help you through the ADR and legal process as your
When Should You Avoid Arbitration in an NYC Car Accident Case?
If arbitration is completely optional, then there can be situations where it is better for you to go to trial. These situations include:
- When suffering a severe, permanent injury—When you have suffered a “serious injury,” New York law allows you to file a personal injury lawsuit. You are more likely to receive a more significant settlement than what you would have received through arbitration.
- When liability is highly disputed—When liability in the case is disputed, a lawsuit can provide a formal and robust process to present evidence and compel witness testimony. Arbitration may be more relaxed and does not favor intricate liability arguments.
- When you need extensive discovery—Discovery is when you can subpoena the documents you need from the other party. Under arbitration, the amount of evidence one can gain from the other party can be limited.
- You want the right to appeal—Most arbitration agreements are considered final and binding. Under the court process, if you are not satisfied with a court’s decision, you can appeal the decision to a higher court to potentially obtain a more favorable result.
What are the advantages and Disadvantages of Arbitration?
Arbitration will have its fair share of advantages and disadvantages compared to the court process. Whether or not you should go for arbitration can depend on these factors as well as the circumstances of your case.
Advantages
- Speed – Arbitration is typically faster than the NYC court system.
- Reduced costs—Due to a more streamlined process and fewer requirements, arbitration comes with lower legal fees and administrative costs.
- Privacy – The proceedings are confidential, and sensitive information is kept out of the public record.
- Expertise—Arbitrations are often experts in handling particular types of cases.
Disadvantages
- Binding agreement—The final decision of an arbitration can be final, denying you access to the court system and the right to appeal.
- Limited discovery – Unlike in the court procedure, discovery is limited. When your ability to gather evidence is limited, it can harm complex cases.
- Potential bias – An arbitrator selected by an insurance company may be biased against the defendant.
- Informal process – Since there are no strict rules on evidence, the admissibility of evidence can come into question.
Conclusion
Is arbitration a better choice for NYC car accident claims? The answer is, it depends. While arbitration is a quicker and less strict process, the rigid procedure and rules of the court process have its own benefits. The choice between the two will depend on the facts and circumstances of your case. Arbitration or court, you will need the help of an experienced Brooklyn car accident lawyer in both. At Alex Yadgarov & Associates, we represent our clients in ADR and in court, fighting for justice and doing everything we can to help you secure the compensation you deserve. If you’re looking to get our services, contact us today and schedule your free and confidential consultation.
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