Arbitration of business-to-business disputes has substantially increased in popularity over the past 25 years and is now an important, permanent feature of the legal landscape.
The swing of the pendulum in favor of arbitration followed decades in which it was used sparingly, even after enactment of statutes like the Federal Arbitration Act in 1925. Now, however, the pendulum seems to be swinging back to the middle. Attorneys and their clients are concluding that arbitration — whether pursuant to a contractual provision or agreed upon later by the parties — may not be as advantageous as previously thought.
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