By Jerry Carter. InsideCounsel.com has published a study comparing the cost of arbitration with the cost of litigation using outside counsel on an hourly fee basis. Perhaps surprisingly, this study concludes that litigation in court was less expensive for the cases studied.
Unfortunately, few details are provided regarding the cases studied. Nevertheless, the conclusions of the study are consistent with my experience. If the primary goal of using arbitration is to save money, then the parties need to structure the arbitration process in a manner that limits discovery and motion practice. If the parties are unwilling to do that, then they might as well litigate and thereby reduce their forum fees.