Many parties, contractually bound to arbitrate, have turned to online arbitration rather than wait out the global pandemic to resolve their matters. Cheaper and faster than litigation and even traditional arbitration, online arbitration also protects participants through built-in social distancing as they arbitrate from their individual locations via the internet. In fact, as the pandemic continues and courts remain closed or backlogged, more would-be litigants have also moved their disputes to remote arbitration. Many savvy parties realize the huge potential for savings in pre-judgment interest when they arbitrate rather than litigate their claims.
Take a Massachusetts court case as an example. With a 12% statutory pre-judgment interest rate and an average five-year time to trial, even before the coronavirus, a million-dollar judgment easily becomes a $1.6 million hit, without including the five years of attorneys’ fees and costs. That same case would likely get to arbitration in less a year or sooner if the parties expedite it. Do the math!