Big Time Spread Between Adjudication By Trial And By Arbitration

By on October 15, 2018

October 15, 2018

According to a Micronomics analysis, U.S. district court cases took more than 12 months longer to get to trial than cases adjudicated by arbitration (two years v. a little less than one). Taking the comparison through appeal, the spread is 21 months. The comparison for eight states with heavy litigation loads – California, New York, Texas, Florida, Pennsylvania, Georgia, New Jersey, and Illinois – district court cases took 15-17 months longer to get to trial than cases adjudicated by arbitration. The situation in state courts is probably worse due to drastic cutbacks in court budgets. Thirty-nine states have suspended filling clerk vacancies; 36 state courts report layoffs or furloughs; 28 have increased case backlogs; 23 have reduced operating hours; and ten state courts report furloughing judges. The costs involved in delay can be estimated by assuming the resources at issue between litigants are removed from circulation until the case is concluded. For example, a dispute between a supplier and purchaser in which the supplier claims the purchaser owes $1 million leaves both supplier and purchaser uncertain as to which party will retain the funds after the dispute has been adjudicated, so neither can use that money.
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American Arbitration Association

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