Time Is Money

Alternative dispute resolution has gained significant ground over the past few decades. Many jurists join arbitration and mediation companies upon retirement, and participants get the benefit of their experience on the bench in order to obtain resolution. These forms of ADR also tend to resolve cases faster than litigation in state or federal court. There is, however, a downside that is sometimes not considered by the parties—the cost.

I was recently involved in a case where a breach of contract was being claimed, and the contract at issue had an arbitration clause. The damage claim was for $61,000.00. The claimant filed the claim with the arbitration company in May, 2025, and the arbitrator, a retired judge, of course, rendered an award in early March, 2026. In other words, a case that would normally be in Law Division due to the amount at issue was able to conclude in only 10 months.

For that speed, the parties had to pay for the arbitrator and the company. How much did each party have to pay to get the matter concluded in only 10 months? About $21,000.00. Each. For a case valued at $61,000.00, the parties had to pay approximately $42,000.00 for the arbitration. That does not include the fees that the parties had to pay to their own attorneys. Contrast this situation if it had been filed in the Law Division in state court. While possible, it is highly unlikely that the case could have been concluded in only 10 months after completion of written and oral discovery, as well as a bench trial. However, the clear upside is that state court judges are paid by the government, and the parties only have to pay filing and appearance fees in order to get the case in front of a judge.

Litigants and lawyers alike should consider if having a dispute resolved via arbitration is actually in everyone’s best interests. While the expedited award allows for a swift conclusion, it should be decided by everyone involved if the speed of the award is worth the cost. Even if an agreement has a binding arbitration clause, the parties can still agree not to have a matter decided in arbitration and try the case in state or federal court.

Arbitration and mediation clauses can be very helpful and can certainly aid in having disputes resolved quickly. Sometimes, however, speed and efficiency may not be worth the cost. Time is money, or in this case, less time is more money.

Michael G. Cortina is a past Chair of what is now the Commercial Banking, Collections, and Bankruptcy Section Council of the Illinois State Bar Association and is a Partner with Amundsen Davis with an office in Crystal Lake.