What is Arbitration: How does it Work?
Arbitration is the process of resolving a dispute by appointing an impartial adjudicator and agreeing to be bound by the adjudicator’s decision. Arbitration decisions are enforceable by the courts, thereby preventing either party from reneging. Often used to resolve commercial, and particularly international commercial disputes, arbitration is increasingly preferred to litigation. It is sometimes referred to as the businessman’s method of resolving disputes, perhaps partly because of its commitment to privacy and confidentiality while offering a faster, more economical and flexible process than the courts. As opposed to litigation and the courts, for example, arbitration services allow the disputants to arrange schedules and venues convenient for both.
How does Arbitration work?
When two parties agree to arbitration, they are agreeing to a number of set terms which they have the opportunity to define prior to engaging in the process: the timeframe, types and number of documents, venues, representatives and choice of arbiter, for example. But most important is the understanding that the settlement is final, with limited to no review permissible. While the process is more efficient and less formal than the courts, the arbitrator’s decision is no less binding than that of a judge.
This is a streamlined arbitration service available to parties with less complicated issues and lower amounts involved. For an all-inclusive fee of $7500.00 per disputant, the arbitration and award issuance will be completed within three months. This efficiency is attained by providing one hearing and placing reasonable limitations on the submission of documents and briefs.