Arbitration in Virginia and Maryland

Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute.  In choosing arbitration, the parties opt for a private resolution procedure instead of choosing the public court system.  An existing dispute can be referred to arbitration by agreement of the parties.  Once arbitration is commenced, a party cannot unilaterally withdraw from arbitration.

Mediation, by contrast, is a voluntary process in which two or more parties involved in a dispute work with an impartial party, the mediator, to generate their own solutions in settling their conflict.   Unlike a judge or an arbitrator whose decisions may subject one party to win and the other party to lose, mediation is about finding a solution that works for both parties.  Mediation is essentially facilitated negotiation.

Alternative Dispute Resolution (ADR), whether Arbitration or Mediation, is an ever-expanding reality in business and other civil disputes.  Many contracts require Arbitration instead of litigation in the courts.  Some contracts require Mediation before a party can initiate suit for breach.

Arbitration and Mediation require a detailed knowledge of the law applicable to a given case, knowledge of ADR procedures, as well as experience in litigation and negotiation.  Based on their years of experience in Arbitration and Mediation, the Virginia & Maryland attorneys at the SRIS Law Group, P.C. will represent your interests with determination and professionalism.

VIRGINIA AND MARYLAND CODE FOR ARBITRATION AND MEDIATION

Va. Code Ann. § 8.01-581.02 Proceedings to compel or stay arbitration

A. On application of a party showing an agreement described in § 8.01-581.01, and the opposing party’s refusal to arbitrate, the court shall order the parties to proceed with arbitration. However, if the opposing party denies the existence of the agreement to arbitrate, the court shall proceed summarily to the determination of the issue of the existence of an agreement and shall order arbitration only if found for the moving party.

B. On application, the court may stay an arbitration proceeding commenced or threatened on a showing that there is no agreement to arbitrate. Such an issue, when in substantial and bona fide dispute, shall be forthwith and summarily tried and the stay ordered if found for the moving party. If found for the opposing party, the court shall order the parties to proceed to arbitration

C. If an issue referable to arbitration under the alleged agreement is involved in an action or proceeding pending in a court having jurisdiction to hear applications under subsection A of this section, the application shall be made therein. Otherwise, subject to § 8.01-581.015, the application may be made in any court of competent jurisdiction.

D. Any action or proceeding involving an issue subject to arbitration shall be stayed if an order for arbitration or an application therefor has been made under this section. However, if the issue is severable, the stay may be with respect thereto only. When the application is made in such action or proceeding, the order for arbitration shall include the stay.

E. An order for arbitration shall not be refused on the ground that the claim in issue lacks merit or bona fides or because any fault or grounds for the claim sought to be arbitrated have not been shown.

Md. COURTS AND JUDICIAL PROCEEDINGS Code Ann. § 3-206 Validity of arbitration agreements; agreements between employers and employees

(a) Validity. — Except as otherwise provided in this subtitle, a written agreement to submit any existing controversy to arbitration or a provision in a written contract to submit to arbitration any controversy arising between the parties in the future is valid and enforceable, and is irrevocable, except upon grounds that exist at law or in equity for the revocation of a contract.

(b) Agreement between employers and employees. — This subtitle does not apply to an arbitration agreement between employers and employees or between their respective representatives unless it is expressly provided in the agreement that this subtitle shall apply.