Bifurcated Arbitration Process

Bifurcated Arbitration Process

The Bifurcated Arbitration Process is a method used in arbitration in which the proceedings are divided into two separate phases. This approach allows for different aspects of a dispute to be resolved independently, often streamlining the arbitration process and making it more efficient.

In the context of arbitration, the bifurcated process typically involves separating the issues of liability from the issues of damages. In the first phase, the arbitrator focuses solely on determining whether a party is liable for the claims made against them. If liability is established, the second phase then addresses the specific damages or remedies owed to the prevailing party.

For example, in a contract dispute, the arbitration may first resolve whether one party failed to meet their contractual obligations. If the arbitrator finds that a breach occurred, the second phase would then involve evaluating the extent of damages incurred by the non-breaching party, including compensatory damages, consequential damages, or any other relevant remedies.

The bifurcated arbitration process can benefit parties by potentially reducing costs and time by addressing complex issues in a structured manner, allowing for a more focused resolution without the need to present all evidence at once. Additionally, it can help in cases where liability is uncertain, as parties may seek to resolve that issue first before incurring further legal expenses.