Why California Is a Favorable Forum for Arbitration

When faced with commercial disputes, businesses often seek arbitration as a faster, more confidential alternative to traditional litigation. When fixing the forum for arbitration, California emerges as a compelling choice due to several factors, including a progressive approach that fosters fairness.

California has a legal framework that underscores the sanctity of arbitration agreements. The California Arbitration Act (CAA) adopts the standards of the internationally recognized UNCITRAL Model Law. This alignment fosters predictability and reduces the risk of challenges to the enforceability of arbitration clauses. 

California courts play a supportive role in the arbitration process without overstepping their bounds. They readily enforce arbitration agreements and arbitral awards while also ensuring that a certain level of due process is maintained within the arbitration itself. This balanced approach fosters finality and discourages frivolous litigation aimed at derailing the arbitration process.

California's progressive approach to arbitration features an openness to flexible procedures. While some jurisdictions impose rigid rules, California allows parties to agree on the scope of discovery, witness testimony and other evidentiary and procedural matters. This flexibility allows for a more cost-effective arbitration without compromising the fairness of the process, thus leading to a more efficient resolution.

California also has a strong record of protecting employee rights. While arbitration agreements are generally enforceable in commercial disputes, recent court decisions have placed some limitations on their application in the employment context. This nuance is important to consider, particularly for businesses with a significant California workforce.

Beyond legal considerations, California offers a wealth of practical advantages. Its cosmopolitan cities provide excellent venues for arbitration hearings, with state-of-the-art facilities and convenient access for international participants. The state's diverse cultural landscape fosters a welcoming environment for parties from all corners of the globe.

Finally, California boasts a deep pool of experienced arbitrators. Cities like Los Angeles and San Francisco as well as the Bay Area and the Central Valley are home to diverse legal community, with a wealth of arbitrators adept at handling complex commercial disputes. Parties can choose from a range of arbitrators, including those concentrating in specific industries or legal areas. This depth of talent allows for the selection of a neutral with the expertise required for the specific case.

Quinn & Kronlund, LLP in Stockton, California has deep experience as a provider of alternative dispute resolution, including arbitration, in a wide range of legal matters. Feel free to contact us online or call 209-943-3950 to learn more about the services we offer.