The Arbitration Alternative: A Comparative Analysis of Case Processing Time, Disposition Mode, and Cost in the American Arbitration Association and the Courts

Abstract

Alternatives to traditional litigation have been popular topics for discussions and debate in recent years, though existing alternatives have seldom been the subject of empirical inquiry. This note compares one particular alternative, arbitration through the American Arbitration Association (AAA) to civil litigation in state and federal courts. The analysis shows (1) that AAA cases are generally processed more quickly than court cases, (2) that AAA cases are more likely to be decided (rather than settled), and (3) that AAA processing is not necessarily less costly than court processing.