Sunday, November 14, 2010

Re-Blogged From The Critical Path-Resolving Construction Defect Cases: Are Arbitration Provisions in CC&R's Enforceable?

Saw this blog post by Ron White of Ron White Mediation...passing it on for our readers edification...

Resolving Construction Defect Cases: Are Arbitration Provisions in CC&R's Enforceable?

In construction defect cases there is often a dispute within the dispute: should the case be prosecuted in a court of law or proceed under the terms and conditions of an arbitration provision? There are rational reasons for selecting arbitration over a court or jury trial. Many believe that arbitrations are more cost effective than jury trials, for example. However, parties who arbitrate their disputes give up the constitutional right to a jury trial and their appellate rights are generally restricted, among other things.
Real estate developers often prefer arbitration over jury trials for various reasons, not the least of which is the belief that they would fair better in front of an experienced construction law arbitrator than they would in front of 12 jurors who probably have little or no understanding of the construction industry.

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