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What is Arbitration? 

Arbitration is an effective means of resolving commercial disputes without having to go through the courts process.

These proceedings will usually arise if agreement cannot be reached between disputing parties but both parties agree to referrer to the case to an independent arbitrator (neutral individual or body) and accept their decision on the matter. This will usually take place by way of an Arbitration.

Arbitration results in a decision that is binding on all parties and is based upon an agreement by the parties to have a dispute settled in this manner. There is no right to revert to the Court and the decision is imposed on the parties. Arbitration is a more final process than the other methods of ADR which generally require some form of consensus by the parties to reach a resolution.

Who should seek Arbitration?

Parties who are in dispute and require a formal binding decision to resolve and conclude their dispute can seek the services of an arbitrator. It is usual practice for the parties to appoint just one arbitrator in some cases the parties may appoint a panel of arbitrators, usually three.

The arbitrator (s) are independent, on hearing and or reviewing the documents the parties submit they shall provide an award (decision), which is final and binding on the parties. In some cases a hearing will not be required and the arbitrator can simply provide an award (decision) through the written documents that they have received. We aim to dissolve disputes in arbitration as it is considered much quicker than entering into litigation.

What are the advantages of arbitration?

  • Arbitration is more time efficient than court proceedings.
  • Arbitration is also cost effective and more convenient for companies seeking alternative dispute resolutions.
  • If you are the successful party in arbitration, there are not many paths for the opposing party to seek an appeal for arbitration.
  • Arbitrators carry a degree of expertise and can deal with any technicalities about the case.
  • Arbitration is a confidential procedure, therefore an award reaped from it is not disclosed to public knowledge.

What is difference between arbitration and litigation?

Arbitration differs from litigation in the following ways;

  • Contractual foundation; compared to litigation, arbitration is based on the contract with the rights and duties of the parties to arbitrate arise from the contract itself.
  • Location; In arbitration, the parties can choose the location of the proceedings.
  • Confidentiality; arbitration is generally confidential.
  • The final decision; a decision may by an arbitrator is generally definitive and is not appealed or challenged. However, it is important to that a court may provide an exceptional circumstance in some cases.
  • What is the role of the arbitrator?

    The arbitrator has a duty to act fairly between the parties, they must also appropriate practice to prevent any delays, costs, and unambiguity.

    Once the arbitrator has heard the case in its entirety, they must make a final decision to reach a settlement and share this decision with both parties. This decision is usually final and binding however if one of the parties are unhappy with the settlement, they can bring their dispute before the court. it is important to note that if you bring your dispute before the court, you are still entitled to follow the arbitrator’s decision until the court may overturn the ruling. However, the court often avoids overruling the arbitrator’s decision.

    How We Can Help

    We have the expertise you need to manage a dispute effectively and make sure mediation and arbitration issues are handled correctly with a focus on achieving the best outcome for you and your business. Please complete our enquiry form for further information and advice.

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      Arbitration was last modified: May 17th, 2022 by Conal McGarrity