When two businesses or individuals have a dispute, they often turn to arbitration to resolve the matter. Arbitration is defined as a process in which an impartial third party, called an arbitrator, hears both parties of the dispute and makes a decision that is binding on both parties. While arbitration is typically used to resolve disputes between businesses, it can also be used to resolve disputes between individuals.
There are many benefits to arbitration, including speed, cost-effectiveness, and privacy. Arbitration is usually faster than going to court, as there is no need for extensive discovery or motions practice. In addition, Jeremy Schulman describes that arbitration is typically less expensive than litigating a case in court. Finally, arbitration is often more private than going to court, as arbitral proceedings are typically not public records.
The Arbitration Process.
Arbitration generally proceeds as follows: first, the parties select an arbitrator (or panel of arbitrators) and agree on the rules of procedure that will govern the arbitration proceeding. Next, each party has an opportunity to present its case to the arbitrator (or panel). After hearing both sides of the dispute, the arbitrator (or panel) will issue a written decision that is binding on both parties.
The Types of Disputes That Are Suitable for Arbitration.
Almost any type of business dispute can be resolved through arbitration, including breach of contract disputes, employment disputes, partnership disputes, and intellectual property disputes. In addition, many consumer disputes can also be resolved through arbitration, such as disputes involving defective products or services.
The Apparent Benefits.
The benefits of international arbitration are numerous.
- First, it allows companies to resolve disputes in a neutral forum.
- Second, it provides flexibility in terms of procedure and evidence.
- Third, it allows companies to choose arbitrators with relevant experience and expertise.
- Finally, it typically leads to faster resolutions than civil litigation in national courts.
While domestic arbitration has many of the same benefits as international arbitration, there are some key differences.
- First, domestic arbitration is usually less expensive than international arbitration.
- Second, domestic arbitration proceedings are typically conducted in English, whereas international arbitration proceedings may be conducted in any number of languages.
- Third, domestic arbitrations are usually quicker than international arbitrations.
Advantages of Arbitration.
One of the key advantages of arbitration is that it allows the parties to choose their own arbitrator, who will then hear both sides of the dispute and make a binding decision. This means that the arbitrator will have expertise in the specific area of law that pertains to the dispute, which can result in a more efficient and just resolution. Additionally, arbitration is typically less formal than litigation, which can save on costs and allow for a quicker resolution. Finally, arbitration proceedings are confidential, meaning that information disclosed during the arbitral process cannot be used against either party in future litigation.
The final call.
Whether you are involved in a dispute with another business or individual domestically or internationally, arbitration may be the best option for you. Arbitration offers many benefits over traditional litigation in court, including speedier resolution times, lower costs and greater flexibility. If you are involved in a business dispute, consider contacting an experienced arbitrator to discuss your options.
