Arbitration – An Alternative Route To Dispute Resolution – Litigation, Mediation & Arbitration

As commercial organisations across the world pick themselves up
and focus on rebuilding after the body blow of the coronavirus
pandemic many businesses are facing contentious business
disputes.  The unprecedented commercial environment that has
been experienced over the past few months has inevitably caused
many businesses to lose ground, which can lead to failure to honour
contracts and failure to settle invoices. 

It is all too frequent that when in an adverse situation the
parties involved become polarised and struggle to reach a solution.
Businesses need a swift solution to disputes in the present
circumstances and the possibility of a lengthy and costly court
case is an unwelcome additional worry.  This can become even
more daunting if the issue is cross-border involving companies
based in different countries.

The law of England and Wales is commonly selected in
international contracts and cross-border transactions. It is
therefore important, regardless of the nature of the dispute, that
the aggrieved party should have expert legal advice, in their own
language, giving clarity to their responsibilities and informing
them of any potential risk to their business that the impact of a
dispute could have, as well as a guidance on the chances of success
and assistance in presenting the issue to either the arbitrator/s
or in a court of law.

Arbitration is a formal procedure whereby the parties agree to
refer the dispute to a neutral arbitrator who provides a legally
enforceable decision.  The arbitrator’s decision is
binding on all parties.  Once an arbitration has commenced it
will proceed in accordance with the procedure that has been
adopted, depending on a range of factors.  Usually, each party
will present a written submission outlining their perception of the
matter which will almost certainly be supported by documentary
evidence.  The procedure may involve more than one hearing and
can last as little as one day or continue for several weeks,
depending on the complexity of the issue. 

Once all aspects of the issue have been examined the
arbitrator’s decision will be forthcoming, which as previously
mentioned is legally binding.  The decision can be challenged
depending on the terms of the arbitration agreement.  However,
an appeal regarding a decision would usually only be successful if
it involved an error in the law or if the proceedings were not
conducted properly.  Enforcement of a decision can be
marginally easier, depending on the jurisdiction. 

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.