Since arbitration is a contract-based dispute resolution mechanism, there may be steps set out in the contract that must be followed before you can begin arbitration. This may include meetings between high-level people in both organizations to try to resolve the dispute or mediation. (Examples of major international arbitration institutions: the London Court of International Arbitration (LCIA), the International Chamber of Commerce (ICC), the Singapore International Arbitration Centre, the Hong Kong International Arbitration Centre and the Stockholm Chamber of Commerce. There are many others who have varying degrees of experience in dealing with international disputes.) Arbitration guidelines are generally as follows, write Sarah Rudolph Cole and Kristen M. Blankley in their „Arbitration“ chapter of the Handbook of Dispute Resolution (Jossey-Bass, 2005). Together, the parties select an arbitrator from a list provided by an arbitration firm. The arbitration will take place in a private conference room and not in a public courtroom. The arbitrator begins by stating the ground rules; then each party makes an opening statement, or its lawyers do so. Each party then presents its evidence and, if necessary, calls witnesses to support its claims.
During this time, the arbitrator may ask questions to clarify their understanding of the issues (for more information on the pros and cons of arbitration versus mediation as a dispute resolution procedure, see Arbitration vs. Mediation and Dispute Resolution in Alternative Dispute Resolution (ADR)). Compared to a trial, arbitration is relatively inexpensive, short and confidential. Courts generally refuse to overturn arbitral awards and can intervene to ensure that they are enforced. This means that arbitration leads to final outcomes that allow the parties to move forward, while avoiding the public scrutiny that can accompany a court case. The arbitration agreement determines the key elements of the process. For example: An arbitration agreement is entered into by two parties who enter into a contract whereby all disputes arising between them in connection with the contractual agreement must be resolved without going to court and with the assistance of an arbitrator. The agreement must mention who is to choose the arbitrator, what type of dispute the arbitrator is to decide, the place of arbitration, etc. One of the advantages of arbitration is that it is generally easier to enforce an arbitral award in another country than to enforce a court order. However, enforcement regimes vary and it is essential to consider enforcement perspectives when deciding whether and, if so, how to resolve a dispute before too much time and money is spent. This is especially the case when cash in the bank is one of the important factors in arbitration.
The existence of a dispute is an essential condition of arbitration. Once the parties have effectively resolved their disputes, they cannot rebut the settlement and invoke an arbitration clause. An arbitration agreement can be a simple provision that by signing the contract, you agree to arbitration if future disputes arise. For example, a business owner can reduce the potential costs of litigation by requiring everyone they do business with to sign an arbitration agreement. For more complex cases, a mandatory arbitration clause may be required. One of the main attractions of arbitration is that in most countries of the world, arbitral awards can generally be enforced without rehearing the issues and after a relatively short process. The realities of enforcement vary depending on factors such as: It is important to pay close attention to the forum arbitration rules as included in the arbitration clause. To reduce costs and improve the efficiency of dispute resolution, companies often require their customers and employees to sign an arbitration agreement. However, because arbitration clauses in long standard contracts often appear as „fine print,“ people often sign arbitration agreements without realizing it. By entering into an arbitration agreement, the parties agree to refer their dispute to a neutral court to decide on their rights and obligations. Although it is sometimes described as a form of alternative dispute resolution, arbitration is not the same as mediation or arbitration. A mediator or arbitrator can only recommend results, and the parties can choose whether or not to accept these recommendations.
In contrast, an arbitral tribunal has the power to make decisions that are binding on the parties. An arbitration agreement must be in writing. According to Article 7, paragraph 4, of the Act, the arbitration agreement is considered written if it is included in: Not all disputes end in court. This ensures that the justice system does not get bogged down even further. It also saves contracting parties time and money. In many cases, especially for small claims that do not involve large sums of money, arbitration can work well. If you are not sure if this is the right choice for you, contact a lawyer. Most arbitration clauses restrict disclosure prior to arbitration. A well-written arbitration clause expands or limits discovery based on the dollar value of the dispute.
In arbitration, a trained, professional and neutral arbitrator acts as a judge who makes a decision to end your dispute. Arbitrators are often retired judges, but that doesn`t mean they follow traditional legal procedures to the letter. .