Arbitration, of course, exists by contractual design. For this reason, considerable thought should be given to the terms of any contractual provision that provides for the resolution of disputes by arbitration. The parties are free to design an arbitration provision that forecloses certain issues that could arise once there is a dispute that needs to be resolved by arbitration. All too often parties insert arbitration clauses that give rise to problems that could be avoided if more thought were given to the drafting of an arbitration clause.

Arbitration is intended to be an expeditious, cost-effective, and streamlined way of resolving disputes. The virtue of arbitration is that the parties to a contract can avoid the delays and expense that come with resolving a dispute in a courtroom. Court dockets contain hundreds of cases with a single trial judge, who is contending on a daily basis with multiple motions, hearings, orders to show cause, and trials, all of which renders it nearly impossible to achieve resolution of a dispute in court in less than two years. And don't forget about the expenses associated with discovery rules and necessary court filings.