Business Courts and the Future of Arbitration

Cardozo Journal of Conflict Resolution, Vol. 10, p. 491, 2009

18 Pages Posted: 5 Jul 2011

Date Written: July 3, 2011


The future of arbitration depends not only on arbitration but also on its competitors—the public courts, including business courts. The creation of business courts incorporates some of the preferred characteristics of arbitration (in particular, expert decision making and expedited case management) into litigation, making litigation a more effective competitor to arbitration. Litigation in business courts has some advantages over arbitration (such as lower upfront costs), while arbitration retains some of its advantages over litigation (such as choice of decision maker and confidentiality).

Given this structural comparison, one would expect on the margin for business courts to make litigation a more attractive forum for resolving business disputes than arbitration. But the limited empirical evidence available does not show any significant move away from arbitration to business courts as yet. Certainly the analysis here does not resolve as an empirical matter the potential effect of business courts on the future of arbitration. Rather, my hope is to begin the discussion, and to prompt others to examine the issue more systematically.

Keywords: Arbitration, Dispute Resolution, Contracts, Business Courts

JEL Classification: K12, K41

Suggested Citation

Drahozal, Christopher R., Business Courts and the Future of Arbitration (July 3, 2011). Cardozo Journal of Conflict Resolution, Vol. 10, p. 491, 2009. Available at SSRN:

Christopher R. Drahozal (Contact Author)

University of Kansas School of Law ( email )

Green Hall
1535 W. 15th Street
Lawrence, KS 66045-7577
United States
785-864-9239 (Phone)
785-864-5054 (Fax)

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