Alternative Dispute Resolution
Both mediation and arbitration are forms of Alternative Dispute Resolution (ADR), private alternatives to a public courtroom trial. Like in court, an experienced construction attorney is a must for Homeowners to prevail in these cases.
In mediation, an impartial mediator acts as a liaison between opposing parties to achieve a mutually agreeable settlement agreement. The mediation itself typically lasts for a single day, but it can require a lot of preparation beforehand. Our attorneys at Johnson Law are experienced in navigating the mediation process, and have facilitated countless favorable outcomes for our clients.
In arbitration, the process is very similar to traditional court litigation, but with a neutral third party making the final ruling rather than a judge or jury. This third party is will typically be someone who is very knowledgeable about the construction industry. Arbitration moves a lot faster than court, and can be a lot less expensive. The arbitrator’s decision is just as legally enforceable as a judge’s would be. However, typically the decisions an arbitrator makes can’t be appealed, and by consenting to arbitration you forfeit your ability to later go to trial.
An arbitration agreement is a legally binding contract stipulating that parties must resolve all future disputes through arbitration instead of going to court. These agreements are very common in residential construction contracts because they save builders a lot of money in court costs. Often, homeowners sign these contracts without realizing they have this clause, and are blindsided when they can’t take their builder to court.
That does not mean homeowners cannot prevail in arbitration. At Johnson Law, we regularly successfully represent our clients in arbitration hearings. Common mediation and arbitration organizations we use include the American Arbitration Association (AAA), JAMS, and Judicial Arbiter Group (JAG). Additionally, Chad Johnson works as an arbitrator with several different ADR providers, including AAA’s Construction Industry Panel, so he is able to provide rare insight into that side of the ADR process.