Arbitration procedures in North Carolina, like those in many other places, are designed to provide an alternative dispute resolution method that can be faster and less formal than traditional court proceedings. The following are some critical points about arbitration in North Carolina.
What is arbitration in NC?
On one hand, businesses usually have arbitration procedures established in contracts or agreements. In a contract clause or agreement, the parties outline the rules. A single arbitrator or a panel of arbitrators will decide their dispute.
On the other hand, specific cases, especially minor civil cases, can be subject to mandatory arbitration in North Carolina. If one of the parties disagrees with the outcome of such process, the case can go to trial.
Every civil case involving a money dispute with a $25,000 or less claim is ordered to arbitration. Some cases, such as divorce, domestic violence, child support, guardianship, class actions, wills, and states cannot be resolved through arbitration.
So, how is the procedure?
Overall, both parties present their case, including evidence and witnesses, to an arbitrator or panel of three arbitrators. Arbitrators, experts in the dispute field, can ask questions and request additional information. Finally, arbitrators decide on a resolution for the case.
In court-ordered arbitration, the arbitrator might announce their decision, known as an “award,” right after the hearing, or they might take some extra time to think it over. They’ll then write the award and file it with the court within three days of the hearing.
Arbitration might seem more relaxed than court. Various organizations, such as the American Arbitration Association (AAA) and the North Carolina Dispute Resolution Commission, provide resources and administer arbitration processes. However, businesses and individuals may want to seek legal orientation to understand the arbitration procedures better.
Whether voluntary or mandatory, arbitration in North Carolina provides a structured process where parties can resolve disputes with the help of experienced arbitrators. Understanding the procedures and seeking guidance from established organizations can help ensure a fair and effective resolution.