Michael Idema

Kent County Michigan Divorce Lawyer

30 Years Experience
 
Michigan Divorce Law - Divorce Arbitration - Article by Michael Idema, Kent County, Michigan Divorce Lawyer

Michigan Divorce Arbitration

Arbitration is a process for resolving disputes.  Both parties to the dispute select a neutral lawyer to hear their case and decide any disputed issues.  It is an alternative to going to court and having a Judge resolve the case.

Advantages of Arbitration:

Compared to going to Court, arbitration is:

  • Fast:  The Court system is over-crowded with too many cases and too few Judges.  It can take many months to get a trial.  Often, after waiting for months for your trial date, the trial does not proceed because the Judge ran over on an earlier case, the parties wasted the trial time with more unsuccessful negotiations, one of the attorneys had a court conflict, or someone was sick and the trial had to be adjourned.  By comparison, the arbitration can proceed as soon as the parties, attorneys and arbitrator are ready and have sufficient time available in their schedules.
  • Convenient:  The parties and their attorneys schedule arbitration when they want to do it, not when the Court tells them to do it.  Parties who retain me as arbitrator can elect to do arbitration in the evening, an option never available at Court.
  • Private:  Hearings take place in open Court, on the record.  Spectators can watch.  Arbitration takes place in an attorney's conference room, with no spectators.  Unless the parties agree otherwise, the proceeding is "off the record", except custody, parenting time and support issues, which must be recorded.
  • Informal:  Trials have specific procedures and rules of evidence which must be followed.  In arbitration the parties can set their own rules.  Most parties prefer to proceed in an informal manner.  An arbitration is more like a polite conversation than the stiff formality of a trial.
  • Flexible:  The parties can choose which rules to apply, and can limit what issues the arbitrator can decide or what range of options the arbitrator must choose from.  At trial the parties give up control to the Judge.
  • Inexpensive:  Arbitration takes less time that Court hearings, both because you avoid wasted waiting time at Court, and because the informality of the arbitration proceeding allows the parties to state their cases quickly.  The extra amount you pay the arbitrator is more than offset by the amount of time you are not charged by your own attorney for sitting around Court waiting for your case to be called, and for the shorter time actually spent presenting your case for decision.  Something that might take a one week trial can typically be arbitrated in one day.  Something usually decided by a motion at court in 2 - 4 hours might take 1/2 hour to 1 hour. 
  • Final:   The grounds to appeal from arbitration are much more narrow and limited than appeals from a Judge's decision.  Therefore, arbitration is more likely to end the litigation process. 

Disadvantages of Arbitration:

  • You can't arbitrate unless both parties agree to do so.
  • You give up the right to veto any settlement proposals.  A mediator can't force you to accept a particular settlement offer, but an arbitrator can.  On the other hand, this is also an advantage, in that your opponent also gives up the right to veto settlement proposals.
  • The grounds to appeal an arbitrator's decision are very limited.  You will in all likelihood be stuck with the arbitrator's decision.  On the other hand, this is also an advantage, because your opponent will also be stuck with the decision and you won't have to go through a trial.
  • You might still have to go to Court to enforce the decision if a party will not abide by the arbitrator's decision.  (However, this also applies after a trial if a party does not follow the Judge's decision.)
  • You have to pay the arbitrator, but not a Judge.  Usually the parties agree to split the arbitrator's fee, although you can also agree to arbitrate that issue.  Arbitration can be more expensive than a successful quick negotiated settlement, although it will probably be less expensive than a protracted negotiation or mediation, and certainly less expensive than a trial.

Comparison of Negotiation vs. Mediation vs. Arbitration

Negotiation:  Negotiation requires the voluntary participation of both parties.  If your opponent will not negotiate, you must use a different dispute resolution process.  Direct negotiation with your opponent is not recommended in spouse abuse cases, but is commonly used between attorneys in those cases.  Neither side can force settlement on the other; both sides can veto any proposed settlement.  The process is informal.  You can do it yourself, or involve attorneys.  The goal is to persuade your opponent.  It can be the least expensive method of resolving disputes, although it can also be very expensive if attorneys are involved and the negotiation is lengthy.  It can occur before the case starts, at any point in the case, or even after a trial has occurred.  It is usually an ongoing process until a complete settlement has been achieved.  Most cases are settled through negotiation, but successful resolution of your dispute is not guaranteed.  You might devote considerable time and money to negotiation without success.  Negotiation is usually the first thing you try to resolve disputes.

Mediation:  The parties can elect to use a mediator at any time; however, if settlement negotiations are unsuccessful, the Judge will require that you try mediation before you can proceed to a trial in most cases.  It is not recommended in spouse abuse cases.  You can elect anyone to mediate, or you can select from a list of certified mediators maintained by the Court. No one can force you to settle in mediation.  Mediation is a type of negotiation.  You attempt to persuade your opponent to accept terms that are also acceptable to you.  The mediator helps keep the negotiation going and helps the parties explore alternatives.  However, the mediator does not decide anything, and you are not trying to persuade the mediator.  Either party can terminate the mediation process if they think it is not working.  You might settle right away, or you may not settle after many days of mediation.  The mediator does not make any recommendations to the Judge.  If mediation settles the case, it is because both parties have agreed to the terms.  If both parties agree to the terms, then they are more likely to be satisfied and more likely to honor and follow the terms of the agreement.  Mediation can be unsuccessful, in which event you will be out the mediator's fee without a resolution of the dispute to show for it.  If direct negotiation is ineffective but you still think the case can be settled, you will generally go with mediation.

Arbitration:  Arbitration can only proceed if the parties agree to it.  The Court will not order arbitration over the objection of a party.  The decision to arbitrate is therefore something the parties agree upon through negotiation.  The parties may agree to arbitrate because it is less expensive than hiring attorneys to go to Court, or, if they have attorneys, because it is less expensive than paying their attorneys to go to trial.  Arbitration is not recommended in abuse cases, although it can be used if both parties have attorneys and the Court approves.  The flexibility in procedures can allow parties represented by attorneys not to personally show up at the arbitration,  to come into the arbitrator's office on different days to testify, or take testimony over the telephone.  In family law matters, the arbitrator must be an attorney with at least 5 years of experience, have demonstrated expertise in family law, and have received training in domestic violence.  Although the decision to arbitrate is voluntary, you give up the right to veto settlement proposals, and agree to let the arbitrator resolve the dispute.  You attempt to persuade the arbitrator to accept your proposal instead of trying to persuade your opponent in negotiation or mediation.  You and your attorney are advocating a particular result, not negotiating for a result.  Once you agree to arbitrate, you cannot back out of the process, unless both you and the other party agree to terminate the arbitration.  Like mediation, arbitration is an informal process which occurs in private.  At the end of arbitration, the arbitrator will make a decision, usually in writing, possibly in the form of a proposed Court order.  Except for a very limited right of review by a Judge, arbitration will settle the case and you will not need to proceed to trial.  Arbitration will successfully resolve the dispute, but since the parties have not agreed to the particular result, either party may be unhappy and may be less likely than with negotiation or mediation to honor the decision.  If you don't think there is much chance of settling your dispute through negotiation or mediation, but do not want the delay, hassle and expense of trial, you will generally choose arbitration.

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Michael Idema

Divorce Lawyer

6410-A Alpine Ave NW

Comstock Park, MI 49321

(Between 7 & 8 Mile Roads)

mike@michaelidema.com

(616) 647-2200

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This web site provides information for general knowledge only, and is not a substitute for advice from a lawyer.  For advice about what to do in your specific case please call for a free initial consultation.