Mediation or Arbitration of Business Disputes

If your company in gets into a dispute, the first thought on your mind would be the amount of time, effort, and resources it will take to resolve it through the court process. Fortunately, litigation is not always necessary to resolve a contract dispute, partnership conflict, or other kinds of business disputes – consider mediation or arbitration.

There has been a surge in interest in seeking alternatives to the conventional judicial system during the past two decades. Some of the methods organizations use to resolve disputes are new, while others have been around for a long time. Although each approach has a different goal, they all have the goal of resolving business disputes quickly, cheaply, and amicably compared to litigation. In this regard, alternative dispute resolution (“ADR”) mechanisms such as mediation and arbitration are time and cost-effective. It is possible to greatly lower the expense of resolving a business dispute in both cases. Any time, any place, and at the convenience of the parties, arbitration and mediation can be initiated to resolve the disputes.

Given these factors, there is a strong preference amongst corporates in Florida for arbitration and mediation rather than litigation in the event of a dispute. Sometimes, arbitration or mediation can be mandatory. This is in cases where there are mandatory arbitration or mediation clauses in contracts that mandate the recourse to these mechanisms of ADR in the event of future conflicts. There are several benefits and disadvantages to arbitration and mediation in Florida; we will talk about a few of them in this article.

The benefits of taking recourse of Arbitration and Mediation:

Autonomy of Parties

Due to the fact that arbitration and mediation are conducted privately, parties have more say in how their disagreement is settled than they would in a traditional court proceeding. Unlike in a courtroom, as parties to a disagreement, you may choose the people, such as the arbitrators, who will make the final decisions in your case.

In addition, you have the option of determining the relevant legislation and the language to be used in the proceedings. As parties are allowed to create the most effective processes for the resolution of their dispute, you can expect a speedier resolution to your dispute through arbitration or mediation.


The proceedings of arbitration and mediation in Florida are done in private and are confidential. In addition to this, you can sign a Non-Disclosure Agreement with the other party to protect the confidentiality of the arbitration or mediation. Confidentiality will help you to concentrate on the specifics of the dispute instead of worrying about your company’s public image and reputation. While resolving disputes involving the disclosure of trade secrets or intellectual property, the role of privacy protection can be particularly significant.


The finality of arbitration rulings is a key advantage for parties. While it is possible to have an arbitrator’s award overturned under Florida’s Arbitration Code, this is an extremely rare occurrence. Arbitration is favored by public policy, according to Florida’s courts. Since it is accepted that arbitration is preferable to litigation, courts have very little authority to reverse or amend an arbitration ruling. Only acts or inactions listed in the Revised Florida Arbitration Code, §§ 682.01, Fla. Stat., et seq., may result in court review and modification of an arbitration ruling by courts. It has also been held that a trial court or a district court of appeal cannot reverse an award unless there is a breach of an enumerated provision of the Revised Florida Arbitration Code. According to the Florida Supreme Court, an arbitration award’s finality and enforceable character separate it from other kinds of alternative dispute resolution. According to the Court, it would be counterproductive to enable an arbitrator to judicially evaluate the merits of an arbitration judgement for any reason other than those indicated in the Revised Florida Arbitration Code. Thus, arbitrators’ decisions in Florida are binding on the parties in the great majority of arbitration disputes.

Arbitration and Mediation’s drawbacks:


In contrast to a courtroom trial, arbitration and mediation do not always adhere to the same strict norms of evidence and processes. Arbitrators are exempt from the rules of evidence that sometimes preclude the evidence from being considered by a judge or jury. As a result, an arbitrator’s judgement may be based on information that a judge or jury would not examine at trial, which might be detrimental to your case.

It is possible for an arbitrator to make decisions that would not be suitable in court or push for unusual solutions that you were not anticipating from the process.


Getting into arbitration can be more costly than going to court in many situations. If you are dealing with a highly sought-after arbitrator, you can expect to pay a lot more in fees than you would in a courtroom. A final judgment or award in a non-binding arbitration is not “binding,” and the parties are allowed to go back to court if they so want, thereby increasing the expense of litigation above the first arbitral verdict.


Employees or manufacturers who do not understand how arbitration or mediation works are often at a disadvantage when they go into an ADR against bigger corporations. The balance or outcome in an arbitration or mediation is always slanted more towards the party with more resources.

If you are weighing up getting into arbitration or mediation to resolve your dispute, get in touch with our ADR lawyers.

Many companies and businesses in Florida prefer getting into arbitration or mediation to resolve their disputes. However, that may not be a fit for all purposes and types of disputes. Initiating and going through arbitration or mediation can also get technical in some respects; you need an attorney who has experience in ADR to help you navigate these methods efficiently. Contact our ADR attorneys to schedule a consultation.