Housing Counsel: Arbitration Can Sometimes be as Expensive as Litigation

Washington Post
March 25, 2011

To avoid spending more than the claim is worth in litigation costs, there are various alternatives in construction or real estate disputes. Arbitration can be quicker, and the laid-back nature of many arbitration proceeding allows parties to avoid the archaic rules of evidence. Although arbitration can become as expensive as litigation (especially if there are three arbitrators), the decision is final and rarely appealable.

Alternatively, small claims courts are a good alternative when the claims are between 5-7K (depending on the state). Parties can file their claim without a lawyer, and often merely filing a suit will encourage the parties to reach an amicable settlement. The benefits of resolving disputes early on pay off financially and in terms of peace of mind.

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