Services:  Arbitration Example

Traditionally, arbitration awards, like court judgments, tend to be a win-lose nature at best, and often a lose-lose nature.  Our arbitrators employ mediation and other skills to reach decisions that are as close as possible to a win-win nature.  The following example illustrates this.

Pat and Chris, a couple who have been living together decide to separate.  They have agreed to the division of all property except a 1975 VW Beetle they purchased a year ago.  

In the process of arbitration, each of them presents why they should get the VW Beetle.  Pat needs reliable transportation to get to work, Chris wants to keep it as an antique, etc, etc.

A traditional arbitration award, or court judgment, would be to either sell the car and split the proceeds, or get it appraised and one of them can buy the other out.  The latter decision might be avoided because then there may be an issue of who gets to buy the other out at the appraised value.

By exploring for information and getting a better understanding of each person's interests, the arbitrator would easily discover that Chris doesn't need a vehicle right now, but wants to keep the car long term.  Pat doesn't care so much about this particular car, but needs something reliable to get to and from work, and doesn't have the time or the money to get something as reliable as this VW Beetle.  

If Pat could drive the car for a year or so, then get something else, Chris could get the car after that and keep it indefinitely.  This is truly a win-win situation, because both of their needs are met.  Chris gets to keep the car long term and Pat gets to have a reliable car to drive.

In general, our arbitration awards will approximate what people could have achieved through a process of mediation.

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