Online arbitration is cheaper and quicker than traditional arbitration, and this is backed up by facts. Ejudicate’s online platform turns an arbitration claim around in 45 days, compared to 410 days with brick and mortar arbitration. 

It is also up to 80 percent cheaper and a run-of-the-mill claim should cost you no more than $1,700.

Traditional face-to-face arbitration is cheaper than civil lawsuit litigation, but it is still time-consuming, costly, and lengthy.

Businesses are increasingly turning away from traditional lawsuits to settle commercial disputes arising from lending contracts.

This is no surprise, given that a lawsuit can take years to resolve and after legal fees, court fees, and other expenses, businesses are often left with a return of pennies to the dollar.

It’s often easier to just write off bad debt or sell it to debt collectors at a loss. The Covid Pandemic has exacerbated this issue further with most district courts reporting that the civil courts backlog has increased by some 30 percent

Traditional arbitration has emerged as an alternative to civil lawsuits. In 2020, almost 10,000 arbitration cases were filed in the US with a total claim value to the tune of $18 billion. 

But the process can still be cumbersome and expensive and still requires parties to engage in face to face interactions. Online arbitration cuts through all that like a hot knife through butter. How? Innovation.

Before we get into the nitty-gritty of why online arbitration is cheaper, let us look at some important questions that people ask when they consider resolving disputes online.

Online arbitration is legally binding

If you have an arbitration clause included in your contract agreement, it is legally binding. The most important thing is to make sure your arbitration clause is clear, concise, and embedded in your agreement and not just a “cut & paste” job.  Get the type of clause that is right for your business.   

You can use Ejudicate’s sample arbitration clause builder to create your own.

If you prevail an Award will be issued in your favor

Because the online arbitration process is legally binding, the defendant must respond to your claim. If they ignore it after being notified by email and registered snail mail, the Ejduge will issue a default and you can proceed to prove up your claim.

If your evidence proves your claim, an Award will be issued in your favor and this can be reduced to an enforceable judgment by filing it in the local and state courts.

So what are the disadvantages of traditional brick and mortar arbitration?

man thinking that online arbitration is cheaper with a backround of dollar signs

If you want a speedy resolution, traditional brick-and-mortar, in-person hearings are going to be quicker than a lawsuit, but they still take time with an average of 410 days to ruling time.

In addition, you will need to deal with being in a room with other people during a pandemic and costs which include: Filing fees, hearing fees, administration fees and expenses, hearing room rental, arbitrator fees (charged by the hour), discovery costs, and attorney fees should you need to engage one. 

Costs can still spiral into the tens of thousands of dollars or more and will likely last more than a year.   Online arbitration is cheaper. But how do online arbitration platforms change that?

So what makes online arbitration with Ejudicate so special?

First off, Ejudicate’s six-step document-centric approach is simple, foolproof, and 100 percent legally binding. It is done asynchronously and online.  

All you do is file your claim and wait for the defendant to respond. Both parties will then enter the litigation phase, after which an impartial Ejudge is assigned on the basis of expertise and jurisdiction to review the claims and evidence.

The Ejudge handles the Discovery Phase, so there are no “fishing expeditions” like you would encounter in a civil lawsuit and in traditional arbitration. 

The Ejudge will then review the evidence and issue an Award in your favor should you prevail in the dispute resolution process.

Ejudicate’s online platform has the same legal efficacy as brick and mortar arbitration. But it is the software and the speed at which claims are decided which give the real advantage.

The average time it takes to turn around an arbitration claim with Ejudicate is 45 days. In addition, you pay an upfront fee which is dependant on case complexity and should cost you an average of  $1,700 or less.

Ejudicate aims to bring the debtor back to the table

As an alternative dispute resolution platform Ejudicate, throughout your dispute, will always focus on encouraging settlement with an emphasis on bringing the debtor back to the table.

When the claim is filed, we encourage clients to stipulate a settlement sum they would find acceptable. 

A settlement option is then presented to the defendant, where they can make their own independent offer.  If the offers are close (or cross-over) we continue the settlement discussion. 

If not we give the parties the chance to modify their positions.  Parties are provided many opportunities to settle the claim there and then, bringing the matter to a satisfactory close.

Can your business recover debt through Online Arbitration

Your business can recover debt without going to court or paying for face-to-face arbitration. Ejudicate has helped businesses across the United States recover debts that were simply not worth the cost of traditional litigation or brick and mortar arbitration, if not for online dispute resolution.

Satisfied participants include electronic commerce sites, factors, banks, MCA, and other lenders. 

Ejudicate also handles quiet title, warranty claims and other declaratory relief actions as well as other types of monetary disputes.   

Our screened network of Ejudges spreads across all 50 states and each case is matched to jurisdiction and subject matter expertise of the Ejudge.

You can request a demo from our homepage or call one of our arbitration consultants today on tel: +12134443794. Alternatively, drop us an email at [email protected] to book an obligation-free consultation.


Ejudicate is a market-leading online arbitration platform in the United States. Our 100 percent online alternative dispute resolution platform helps businesses protect their contracts and agreements through online arbitration. Follow us on LinkedIn or Facebook for updates and news about online arbitration and more.

*Ejudicate cannot and will not give legal advice on any matters, financial or not.