Arbitration is a superior form of dispute resolution, given one simple condition: that the arbitrator is impartial, and both parties trust the arbitrator to be so (OK, maybe that's two simple conditions, or one complex one, but you get my point.)
Our current system of binding arbitration ensures this condition is not met, and encourages people to take their disputes before the state, where one or both parties will, at best, waste several thousand dollars to resolve the dispute, and at worst will end up with the boot of the state on their necks to provide 'restitution' to the other party. Given these two options, you're going to see more and more people deciding to take the third option of exacting 'justice' themselves, and it won't be pretty.
It structurally favors the sophisticated party to a degree that I don't feel is (inherently) present in private arbitration.
Its edicts are backed by the overwhelming capability for violence of the state. As a rule, I avoid interactions with the state as much as possible for this reason.
It completely eliminates the ability of the parties to choose an arbitrator that both find acceptable. The state picks one for you.
I don't think the advantages it provides are worth all that much in civil cases, but I'm very open to other opinions on the topic.
Arbitration is a superior form of dispute resolution, given one simple condition: that the arbitrator is impartial, and both parties trust the arbitrator to be so (OK, maybe that's two simple conditions, or one complex one, but you get my point.)
Our current system of binding arbitration ensures this condition is not met, and encourages people to take their disputes before the state, where one or both parties will, at best, waste several thousand dollars to resolve the dispute, and at worst will end up with the boot of the state on their necks to provide 'restitution' to the other party. Given these two options, you're going to see more and more people deciding to take the third option of exacting 'justice' themselves, and it won't be pretty.
My problem with the court system is threefold:
I don't think the advantages it provides are worth all that much in civil cases, but I'm very open to other opinions on the topic.