↑ Return to Arbitration

Print this Page

FREQUENTLY ASKED QUESTION

FREQUENTLY ASKED QUESTION

FREQUENTLY ASKED

FREQUENTLY ASKED

What is Arbitration?

Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.

What is Arbitration Clause?

An arbitration clause is a clause in a contract that requires the parties to resolve their disputes through an arbitration process. Although such a clause may or may not specify that arbitration occur within a specific jurisdiction, it always binds the parties to a type of resolution outside of the courts, and is therefore considered a kind of forum selection clause.

What is an arbitration agreement?

An arbitration agreement is a written contract in which two or more parties agree to settle a dispute outside of court. The arbitration agreement is ordinarily a clause in a larger contract. The dispute may be about the performance of a specific contract, a claim of unfair or illegal treatment in the workplace, a faulty product, among other various issues. People are free to agree to use arbitration concerning anything that they could otherwise resolve through legal proceedings.

An arbitration agreement can be as simple as a provision in a contract stating that by signing that contract you are agreeing to arbitration in the case of any future disputes

Who can be an arbitrator?
The Arbitrator is an experienced person both parties agree to. The arbitrator takes the place of a judge and jury and listens to the facts presented by the parties, applies the relevant law, and determines the decision on an award. Individuals who serve as arbitrators typically possess certain qualifications or minimum levels of experience to maintain the integrity of the arbitration process. These individuals do not have to be from a legal background. Unlike a judge, arbitrators are paid by the parties, not by the government. A person who has served as a Mediator may not later serve as an Arbitrator, unless specifically agreed in writing by both parties.

Arbitration is a non-voluntary alternative dispute resolution process. Unlike mediation, a knowledgeable, independent, and impartial third party is empowered to make a decision. The arbitrator hears the disagreement between one or more parties and after considering all relevant information renders a final decision in favor of one of the parties. Arbitration decisions may be either binding or non-binding, depending on the terms of the arbitration agreement. Binding arbitration decisions may be confirmed by a court and carry the same significance as a court judgment.

WHAT IS DIFFERENCE BETWEEN MEDIATION AND ARBITRATION?
Mediation is a voluntary alternative dispute resolution process. All parties must consent to participate in good faith and work toward a mutually agreeable resolution. Mediating parties are not bound to resolve their dispute. However once a resolution is reached, it can be made binding if the parties decide to draft a contract called a settlement agreement. Mediations are not “decided” in favor of one party or another; rather, the mediator simply facilitates the negotiation process. The parties decide their own outcome. 

Arbitration is a non-voluntary alternative dispute resolution process. Unlike mediation, a knowledgeable, independent, and impartial third party is empowered to make a decision. The arbitrator hears the disagreement between one or more parties and after considering all relevant information renders a final decision in favor of one of the parties. Arbitration decisions may be either binding or non-binding, depending on the terms of the arbitration agreement. Binding arbitration decisions may be confirmed by a court and carry the same significance as a court judgment.

Arbitration vs Mediation:
Arbitration is a non-voluntary alternative dispute resolution process. Unlike mediation, a knowledgeable, independent, and impartial third party is empowered to make a decision. The arbitrator hears the disagreement between one or more parties and after considering all relevant information renders a final decision in favor of one of the parties. Arbitration decisions may be either binding or non-binding, depending on the terms of the arbitration agreement. Binding arbitration decisions may be confirmed by a court and carry the same significance as a court judgment.

Why Use Arbitration Over Legal Litigation?
Arbitration is generally less expensive than legal litigationand provides for faster resolution through flexible scheduling and simpler rules. Arbitration results are confidential, only made public with the consent of the parties involved.

What Types Of Disputes Can Be Arbitrated?
Any type of disagreement can be arbitrated, including contract disputes involving businesses and consumers, domain name disputes, employment claims, real estate and construction issues, and tort and civil rights matters. Generally, arbitration is utilized when there is some sort of adversarial situation and continuing an amicable relationship is not a top priority.

Who Pays The Arbitration Cost?
The cost will vary depending on the arbitrator’s fee, the complexity of the case, and the length of the arbitration. Arbitrator(s) or Arbitration Association will charge the parties for pre-hearing conferences and review of documents, as well as time spent preparing the award. There may be an administrative expense if the parties go through an Arbitration Association. The arbitration award the amount of the judgment, and/or other costs to each party.

How Do I Choose an Arbitrator?
One of the great benefits of opting for arbitration as a legal method to resolve a dispute is that as a role player in managing your dispute hands-on you can choose the arbitrator that will be present when the arbitration meeting takes place. However, in order to use one to your best advantage you must select an arbitrator that is well-versed in the area of your dispute. This is much like selecting a lawyer, and though not as complex. An arbitrator can make or break your case. So in order to gain the edge on the dispute here are some tips for choosing an arbitrator :

Experience and relevant qualifications
It is imperative that the arbitrator that you choose is reputable in a positive manner. It is also important to screen the arbitrators for your case according to where their expertise lies. Experience is a key trait to look at when choosing an arbitrator. If they are rather inexperienced they will be less likely to negotiate terms that you infer. Also be aware there are different types of arbitrators that have studied and access to knowledge in various niches of dispute resolution by arbitration.

Language
Arbitration is utilized globally to resolve disputes that occur, however it is important that the arbitrator you choose speak the language of the nation or meeting that is taken place – your language preferably. This can be an asset in understanding what is happening in and during the process of the legal resolution of the dispute. It can be distracting to choose an arbitrator that may be well qualified in the niche of dispute that is being handled, however if they do not speak the native language miscommunication can arise.

Nationality 
Nationality is sometimes mandated to be different than of the same as that of the parties who are undergoing the arbitration. It is dependent on the contract, the location, the nationality, the organization or association that is holding the arbitration meeting. There is always a purpose for these rules, so be sure to check what the guidelines are for your specific case or dispute.

Conflict of Interest
It is crucial to make sure that the arbitrator does not interfere with conflict of interest of you or the other party. It is stipulated in governing laws that no arbitrator should be challenged in the impartiality clause as pertaining to conflict of interest to another opposing party. This is a big deal breaker and in fact can definitely cause the agreement of arbitration to wind up in court or to be nullified and void immediately. So be safe when choosing an arbitrator that understands their role and the rues that they are bound by to serve justice fairly and equally.

In conclusion, it should take a great amount of research, screening, and time to choose the exact arbitrator that suits your specific needs. Seek all your options and do not be afraid to ask many questions of the arbitrator as this will benefit you in the long run.

 

 

Read More about FREQUENTLY ASKED questions.

Arbitration FREQUENTLY ASKED questions
ADR FREQUENTLY ASKED.

Dispute FREQUENTLY ASKED.

Info FREQUENTLY ASKED

 

Permanent link to this article: http://www.e-basel.com/arbitration-dispute/frequently-asked-question/