What is Arbitration?
Arbitration is a form of Alternative Dispute Resolution (ADR), which a party would opt for instead of pursuing litigation. It is a private mechanism, so a private process governed by the ordinary rules of contract that parties agree will be pursued should a dispute arise.
Due to the fact that the process is private, the parties benefit from party autonomy, which means that the arbitration is controlled by them and it is subject only to the mandatory rules of an institution or to national laws.
The arbitration uses a third party, an arbitrator, to help the parties reach a solution and both parties agree to accept the decision of the arbitrator as legally binding. The arbitrator makes a decision based on the written evidence provided and makes a decision, which is confidential and cannot be made public without the agreement of the disputing parties.
What are the Benefits of Arbitration or Dispute Resolution?
Unlike litigation, the parties involved make the decision regarding who will arbitrate. This can be a person with the relevant technical expertise to decide on their dispute.
All decisions made are confidential, unlike judgements that are available to the public.
Decisions made in arbitration are all legally binding and can be appealed (on very limited grounds).