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socrateaser, Lawyer
Category: California Employment Law
Satisfied Customers: 39027
Experience:  Retired (mostly)
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I have a breach of contract in a business to business

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 I have a breach of contract in a business to business contract that has a binding arbitration clause. My damages are quite severe in this situation - as a lost volume seller alone. Losses are anywhere between $1.5MM up to $25MM. Does arbitration limit my claim or my ability to recoup as opposed to a law suit? My attorney is out of town right now, but he informed me before he left that the company is clearly in breach of contract and we have the superior position. I am just trying to understand how arbitration will affect my claim, if at all. I want to see if there is any information I can research as well into arbitration cases where there is a high financial loss to one party and if arbitration is satisfactory in seeking these kind of resolutions.


An arbitrator can award anything under a contract that a court can award. Once the award is made, the court will enforce the award.

The result of an arbitrator's decision is functionally equivalent to a judgment in court, once entered in the court docket. So, the answer is that you can obtain the same relief to which you would be entitled in a lawsuit. The only difference is that the rules of evidence are substantially reduced, so arbitration is generally faster and more cost effective.

The downside of this is that sometimes the arbitrator's decision is not as fully informed as would be the case in court -- because evidence which would have been inadmissible in court as either too prejudicial or lacking sufficent foundation, usually finds its way into the arbitration. This can cut both ways -- but if you're the loser, the first reaction is to blame the process, rather than the substance of the case.

My experience is that the better the judge, the better the outcome. This holds for arbitrators as well. It's tough to know if you're getting a really objective jurist -- but, that's what you want, if you can get one.

Hope this helps.
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