Is it correct to think that the "loosing" party will be better of in arbitration than in court? If mr "bad" is sued for oppression, conversion and breach of contract he could be severely punished by the court. Is it correct that an arbitrator would try to find middle ground, and let him off easily if he accepts to pay a few dollars in damages?
Clearly your concept of what arbitration is and how it functions is flawed. Further, civil courts do not punish people. They determine if there is a claim upon which a judgment can be granted. If there is they award damages. That is the same thing an arbitrator does. No, an arbitrator does not try to find middle ground. A "mediator" on the other hand does attempt to get the parties to reach a compromise settlement. But, no one can be forced to settle in a "mediation". In an arbitration there will be a decision. There will be a winner and a loser and the decision cannot be appealed.
I think you are conflating arbitration and mediation. A mediator tries to help the parties to find a middle ground. Seldom does the mediator find the middle ground for them, although some try and a few succeed. It is always better for BOTH parties if they mediate to a settlement as then it is something they created and that makes it more likely to be followed by the parties. Neither a court nor an arbitrator "punishes" the parties (this is presumably the US and not North Korea you are talking about), and in a conversion or breach of contract suit there may be damages but not punishment, unless the law provides for civil penalties such as treble damages, costs, attorneys fees or the like.
"Oppression" is not a recognized cause of action. Perhaps you are talking about "Deception" rather than Oppression. By "Oppression" is normally meant something a government does such as "denial of due process", "taking without just compensation", "denial of equal protection" or the like. If the US Government, you sue to correct that in the US Court of Federal Claims and if your state, you sue either in state court, if permitted by state law, or in US Federal District Court under the 14th Amendment. However, my guess is you don't really mean "oppression."
Since it appears you don't understand law, arbitration, or court procedure, you need to consult a contract lawyer who does.
