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The cost of different ADR options varies, from free to extremely expensive. Most arbitration schemes charge a fee. An experienced arbitrator in a commercial dispute can be very costly. However, consumer arbitration schemes run for a trade association are usually relatively low-cost.
However, arbitration is generally less expensive than litigation because: Discovery is more limited than in court proceedings.
In most cases the arbitrator's decision is legally binding on both sides, so it is not possible to go to court if you are unhappy with the decision.
Each party in an alternative dispute resolution (ADR) process normally agrees to pay its own share of the costs of the ADR process itself (see 23), but the costs incurred in dealing with the dispute more generally will normally be allocated between the parties as part of any settlement achieved.
The arbitrator will write the award and the AAA® will send that to the parties once it is ready. Depending on the rules and the parties' arbitration agreement, the date the award must be given to the parties may differ, but it is usually between 14 and 30 days from the close of hearings.
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The most common types of ADR for civil cases are mediation, settlement conferences, neutral evaluation, and arbitration. Read more about these ADR processes, when they may or may not be appropriate or watch a video demonstration.
Contractual arbitration. This petition requests the court to confirm, correct, or vacate an award in an arbitration conducted according to an agreement between the parties that is subject to Code of Civil Procedure section 1285 et seq.
ADR is considered to be cheaper than both ligation and arbitration. For instance, in mediation, the parties usually just bear their own legal fees and share mediator's fees. By contrast, the general principle that applies in civil cases is that the unsuccessful party pays the other side's costs as well as their own.
Sometime after arbitration, the arbitrator will decide who won. This decision must be in writing. The decision is final and binding so the parties are expected to obey the arbitrator's decision. If they don't, they can be sued.
Second, ADR is less costly than trial. [9] Trial is by far the most expensive stage of litigation.

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