Arbitration is an underutilized tool in Arizona family law cases. Put simply, arbitration is a dispute resolution process where an agreed-upon third party—the arbitrator—resolves a family law dispute outside of a traditional courtroom. The parties jointly select a neutral, third party to consider the facts and evidence in the dispute, the arbitrator makes an award, and the parties are bound by the arbitrator’s decisions. Some attorneys colloquially say that arbitrators are “private judges” because it is most often attorneys in private practice that are retained to serve as arbitrators.
What are the benefits of arbitration? It can be substantially less expensive than taking a dispute to trial. It may seem counterintuitive to think that adding another lawyer to the mix will reduce the cost. However, when compared to traditional litigation, the costs of arbitration can be far less. Family Court judges juggle hundreds—if not thousands—of petitions at any given time. Trials are often scheduled many months in advance; even then, trials can be postponed for a variety of reasons. Compare that scenario to a private arbitrator who is hired for the sole purpose of resolving disputes in one specific case. Under Rule 67.2 (the “Arbitration Rule”), Arizona Rules of Family Law Procedure, arbitrators can select the date of the arbitration hearing, the rules for the arbitration hearing, and hold pre-hearing conferences as necessary. The arbitrator has the discretion as to when and how the hearing will occur. Considering that the arbitrator is only responsible for one case, they can quickly and efficiently resolve the disclosure and discovery disputes that can greatly prolong resolution of a case. This flexibility provided to the arbitrator results in a more nimble, efficient, and less expensive dispute resolution process.
Another benefit is finality. Arbitration awards are less often challenged than decisions made by Superior Court judges. There is obvious financial value in finality. Family law cases that involve post-trial motion practice, or even an appeal to the Arizona Court of Appeals, result in additional cost to clients. Arbitration can also be used as a tool to efficiently resolve disputes after an agreement is reached through mediation.[1] Instead of a party pursuing judicial intervention to challenge or clarify a settlement agreement, the parties can insert into the agreement itself a different dispute resolution process such as arbitration. This allows an arbitrator to efficiently hear the dispute and make an award, providing the dispute needed finality. A final benefit to arbitration is privacy. Arbitrations are most often held in law firm conference rooms as opposed to Superior Court courtrooms. This can prevent the publication of sensitive information.
There is an opportunity cost to each party in every family law case. Traditional family law litigation is expensive, time-consuming, and impersonal. Resources expended in family law litigation could best be utilized elsewhere. Arbitration presents a less formal, faster, and more cost-effective dispute resolution process. The “trial” would be in a conference room at a date and time convenient to all parties. Decisions are made promptly, and arbitration awards are challenged far less often.
[1] An article highlighting the benefits of mediation can be found here:
