Arbitration

 Arbitration is a fast way to get a decision when you are in a dispute.

 Arbitration is more flexible and less formal than court.

 Usually, an arbitration can be scheduled faster than a trial.

 Sometimes, if the parties want, arbitrators can decide things that judges
are not allowed to decide.

 Arbitration is like a trial but less formal.

 In arbitration, two sides present their evidence to an arbitrator.

 The arbitrator decides who wins and who loses. An arbitrator does the
job that a judge or jury would normally do in court.

 Arbitration, a form of alternative dispute resolution (ADR).

 It is a legal technique for the resolution of disputes outside the courts,

where the parties to a dispute refer it to one or more persons (the
"arbitrators", "arbiters" or "arbitral tribunal") by whose decision (the
"award") they agree to be bound.

 It is a resolution technique in which a third party reviews the evidence in

the case and imposes a decision that is legally binding for both sides.

 Other forms of ADR include mediation (a form of settlement negotiation

facilitated by a neutral third party) and non-binding resolution by
experts.

 Arbitration is often used for the resolution of commercial disputes.

 Arbitration can be either voluntary or mandatory (although mandatory

arbitration can only come from a contract that is voluntarily entered
into, where the parties agree to hold all existing or future disputes to
arbitration.

Mediation
 Mediation a form of settlement negotiation facilitated by a neutral third
party.

 Third party, the mediator, assists the parties to negotiate a settlement.

 More specifically, mediation has a structure and timetable that

"ordinary" negotiation.

 The process is private and confidential, possibly enforced by law.

  Participation is typically voluntary.

 The mediator acts as a neutral third party and facilitates rather than
directs the process.

 Mediators use various techniques to open, or improve, dialogue between

disputants, aiming to help the parties reach an agreement.

 Much depends on the mediator's skill and training. As the practice

gained popularity, training programs, certifications and licensing
followed, producing trained, professional mediators.

Advantages of Arbitration

Parties often seek to resolve their disputes through arbitration because of a

number of perceived potential advantages over judicial proceedings:

 When the subject matter of the dispute is highly technical, arbitrators

with an appropriate degree of expertise can be appointed (as one
cannot "choose the judge" in litigation).

 Arbitration is often faster than litigation in court.

 Arbitration can be cheaper and more flexible for businesses.

 Arbitral proceedings and an arbitral award are generally non-public, and

can be made confidential.

 Not a public hearing; there is no public record of the proceedings.

 From defense point of view, there is less exposure to punitive damages.

 Limited discovery because it is controlled by what the parties have

agreed upon and it is all controlled by the arbitrator.

 In arbitral proceedings the language of arbitration may be chosen,

whereas in judicial proceedings the official language of the country of
the competent court will be automatically applied

 In most legal systems there are very limited avenues for appeal of an
arbitral award, which is sometimes an advantage because it limits the
duration of the dispute and any associated liability.

Disadvantages of Arbitration
 There is no right of appeal even if the arbitrator makes a mistake of fact
or law.

 The arbitration process may not be fast and it may not be inexpensive,
  There is no jury and from the claimant’s point of view that may be a
serious drawback.

 An arbitrator may make an award based upon broad principles of

“justice” and “equity” and not necessarily on rules of law or evidence.

 The possibility of compromise or splitting of baby awards.

 Arbitration may become highly complex.

 Arbitration may be subject to pressures from powerful law firms

representing the stronger and wealthier party.

 Arbitration agreements are sometimes contained in ancillary

agreements, or in small print in other agreements, and consumers and
employees often do not know in advance that they have agreed to
mandatory binding pre-dispute arbitration by purchasing a product or
taking a job.

 In some arbitration agreements, the parties are required to pay for the
arbitrators, which adds an additional layer of legal cost that can be
prohibitive, especially in small consumer disputes.

 Although usually thought to be speedier, when there are multiple

arbitrators on the panel, juggling their schedules for hearing dates in
long cases can lead to delays.

 Rule of applicable law is not necessarily binding on the arbitrators,

although they cannot disregard the law.

 Discovery may be more limited in arbitration.

 Unlike court judgments, arbitration awards themselves are not directly

enforceable. A party seeking to enforce an arbitration award must resort
to judicial remedies, called an action to "confirm" an award.

Arbitration “Award”
 Arbitration award means the result.

 An arbitration award (or arbitral award) is a determination on the merits

by an arbitration tribunal in an arbitration, and is analogous to
a judgment in a court of law.

 It is referred to as an 'award' even where all of the claimant's claims fail

(and thus no money needs to be paid by either party), or the award is of
a non-monetary nature.
  The tribunal may order the payment of a sum of money (conventional
damages).

Arbitration Agreement
 In theory, arbitration is a consensual process; a party cannot be forced
to arbitrate a dispute unless he agrees to do so.

 In practice, however, many fine-print arbitration agreements are

inserted in situations in which consumers and employees have no
bargaining power.

 Moreover, arbitration clauses are frequently placed within sealed users'

manuals within products.

 Such agreements are generally divided into two types:

 Agreements which provide that, if a dispute should arise, it will be

resolved by arbitration. These
will generally be normal contracts, but they contain an arbitration
clause.