5 Mistakes to Avoid During Arbitration for Better Outcomes

Mistake 2: Neglecting Thorough Research on Potential Arbitrators

Choosing the right arbitrator or arbitration panel is just as important as building a strong case. Many business disputes, contractual disputes, and arbitration proceedings allow parties to have a say in selecting an experienced arbitrator through an arbitrator selection process. However, failing to research potential arbitrators can lead to biased rulings, conflicts of interest, or an arbitrator lacking subject-matter expertise.

Factors to Consider When Selecting an Arbitrator:

• Experience in arbitration: A qualified arbitrator should have a deep understanding of the nature of arbitration and the legal complexities of the dispute.
• Neutrality and impartiality: Research past arbitration awards and rulings to assess potential biases.
• Familiarity with industry-specific arbitration: Arbitration proceedings differ across commercial arbitration, labor disputes, and international arbitration—choosing an arbitrator with relevant expertise ensures fair proceedings.

Failing to conduct proper research on an arbitrator may result in a one-sided ruling, misinterpretation of arbitration clauses, and arbitration decisions that do not align with contractual agreements.

Mistake 3: Failing to Leverage Pre-Arbitration Discovery Rights

Unlike litigation, arbitration has limited discovery, meaning parties often lack access to extensive documentation, depositions, and interrogatories. However, failing to utilize pre-arbitration discovery rights can leave parties unprepared, weakening their position during the arbitration hearing. Proper discovery ensures that critical evidence, contractual obligations, and procedural arbitrability issues are addressed before the hearing begins.

Key Discovery Rights in Arbitration:

• Requests for Admission – Helps establish agreed-upon facts to prevent disputes over basic contractual terms and legal issues during arbitration.
• Submission Agreements – Defines the scope of arbitration, arbitration procedures, and procedural matters before the hearing, reducing uncertainty.
• Document Production – While arbitration has fewer document disclosure requirements than litigation, parties can still request essential records, contracts, and financial documents to strengthen their arguments.

In complex contractual disputes, commercial arbitration, or international arbitration, understanding institutional rules governing discovery—such as those set by the American Arbitration Association (AAA) —is crucial. Many arbitration institutions outline specific discovery provisions that allow or limit document requests, witness lists, and expert testimony.

For a deeper understanding of arbitration discovery rules and best practices, you can review the American Arbitration Association’s official guidelines on discovery procedures here.

By proactively gathering necessary documents, addressing procedural arbitrability concerns, and ensuring a well-prepared legal strategy, parties can avoid last-minute surprises and significantly improve their chances of a favorable arbitration ruling.

Mistake 4: Drafting Vague Arbitration Clauses

A poorly drafted arbitration clause can lead to jurisdictional disputes, delays, and even invalid arbitration agreements. Many contract disputes arise due to ambiguities in arbitration agreements, which can lead to unnecessary legal battles over arbitrability issues.

Common Issues in Vague Arbitration Clauses:

• Failure to specify the arbitration provider – Not naming an arbitral body (e.g., American Arbitration Association (AAA), or a federal arbitration forum) can create confusion regarding arbitration rules.
• Undefined arbitration procedures – Some clauses fail to mention whether arbitration will be binding or non-binding, causing legal uncertainty.
• Lack of clear arbitration expenses clauses – Omitting arbitration fees and cost-sharing provisions can result in unexpected arbitration costs.

An effective arbitration clause should clearly outline:

1. The scope of arbitration and what disputes will be covered.
2. The arbitration rules and governing arbitration authority.
3. The process for selecting an arbitrator to avoid disputes over arbitrator lists.

To prevent issues, businesses and legal professionals should carefully draft arbitration clauses that ensure a smooth and enforceable arbitration process.

Mistake 5: Adopting an Aggressive Mindset Instead of a Strategic Approach

Many parties make the mistake of treating arbitration as if it were a courtroom battle, adopting an overly aggressive strategy instead of focusing on persuasion, evidence presentation, and dispute resolution. Arbitration is not about winning at all costs—it’s about securing a fair and reasonable outcome.

Why an Aggressive Approach Fails in Arbitration:

• Arbitrators prefer a cooperative atmosphere over hostile legal battles.
• A combative strategy can lead to strained business relationships, making future disputes harder to resolve.
• Arbitrators value expert testimony, well-structured arguments, and fact-based reasoning over emotional appeals.

Instead, parties should approach arbitration with a focus on collaboration, clear legal reasoning, and strategic case presentation. A well-prepared legal counsel should emphasize alternative dispute resolution mechanisms that protect the client’s interests while maintaining professionalism.

Conclusion: Avoiding Pitfalls for a Successful Arbitration Outcome

Arbitration is a powerful dispute resolution mechanism, but common mistakes can undermine its effectiveness. From witness preparation and arbitrator selection to pre-arbitration discovery and strategic case presentation, avoiding these mistakes can significantly improve arbitration outcomes.

For businesses and individuals navigating arbitration proceedings, arbitration agreements, and arbitration clauses, having the right legal guidance is crucial. Rapid Ruling specializes in alternative dispute resolution, arbitration contract reviews, and expert arbitration representation, ensuring fair and strategic arbitration advocacy.

If you need arbitration services, legal counsel, or expert guidance, contact Rapid Ruling today for professional arbitration support.