ALTERNATIVE DISPUTE RESOLUTION

Arbitration

PROCESS:

• The parties jointly select an Arbitrator who may be experienced in the field of their dispute.
• Guided by the Arbitrator the parties agree on what form the Arbitration will take.
• The Arbitrator then controls the process until its termination.
• Each party is given the opportunity to submit their reasons and arguments, including evidence, and to question the evidence offered against them.
• "Expedited" or "Fast Track" Arbitration, if selected, uses only written submissions and can bring significant cost savings.
• The Arbitrator then decides who should pay what to whom in settlement of the dispute and issues an Award accordingly.

ADVANTAGES:

• Arbitration is safeguarded in each state by an Arbitration Act that specfiies how the Arbitration should be conducted.
• Good when technical evidence and arguments are being offered.
• Good when evidence and arguments need to be challenged.
• The process is swift and confidential within the limitations of the law.
• The Arbitrator must give logical reasons for his decisions.
• There is a degree of finality in the result - an Arbitrator's award is normally not easily appealed (but some have been !).
• If a party defaults on what is awarded then this can be directly enforced on application to the relevant court.

DISADVANTAGES:

• Cost of the proceedings can rise unless the parties explicitly agree to expedite them.

OTHER COMMENTS:

• Arbitration is the only common ADR process in which the principles of "natural justice" are explicitly required by statute. Some people, however, dislike the adversarial nature of the proceedings. Modifications of the process are available which can limit the cost of the proceedings ("Expedited" or "Fast Track" Arbitration) and which allow the Arbitration to start with Mediation ("Med-Arb").

 

DISCLAIMER: Information on this website is offered as general information only; it explicitly does not comprise legal advice

 

 

 

 

 

 

 

 

 

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