For nearly a century, arbitration has provided a more equitable and efficient path to resolving civil disputes than litigation. It is no surprise then, that the plaintiffs’ bar and its allies have long attempted to undermine the arbitration mechanism. As their efforts reach a fever pitch, strategic research firm ndp | analytics has conducted an updated study of how arbitration performs compared to litigation.
In short, arbitration remains fairer, faster, and better than litigation for both consumer and employee claimants. Just as ndp found in 2019 and 2020, on average employees and consumers won more money, more often, more quickly by arbitrating disputes than by filing lawsuits. Specifically, in the study period reaching from 2014 to 2021, consumers and employees who initiated arbitration claims fared better on:
- Win rate: Consumers prevailed in 41.7% of arbitrations that terminated with awards compared to 29.3% of litigations that terminated with awards, and employees prevailed in 37.7% of arbitrations that terminated with awards compared to 10.8% of litigations that terminated with awards.
- Amount awarded: Consumers were awarded an average of $79,945 compared to $71,354 in litigation, and employees were awarded an average of $444,134 compared to $407,678 in litigation.
- Time to resolution: Consumers spent an average of 321 days from initiation to termination of their claim in arbitration compared to 439 days in litigation, and employees spent an average of 659 days from initiation to termination in arbitration compared to 715 days in litigation.
