Advantages of Arbitration
There are several advantages to be gained by pursuing the arbitration route. Generally, arbitration cases are faster, more cost-effective and are behind closed doors. Here are some of the advantages of arbitration in more detail:
- Faster than the court system: Arbitration cases generally take a lot less time than court proceedings and are concluded a few months after their filing. Moreover, such proceedings tend to be the final decision without appeals. Therefore, the cases are concluded without need for costly further action.
- Cost efficient: As the proceedings are faster and do not tend to involve further appeals the cost of arbitration tends to be much less than going through the court system. Furthermore, the requirements for arbitration proceedings tend to be more flexible than the court system which can also contribute to the lowering of costs.
- Flexibility: Arbitration proceedings do not need to follow the same rules that apply to formal court settings. Therefore, it is possible to agree rules concerning witnesses and evidence amongst the parties. However, it is advisable to obtain legal assistance before making any such agreement. Timings of the arbitration proceedings can also be more flexible than those of court proceedings.
- Privacy: Arbitration proceedings are much more private than those within the courtroom. Therefore, should a party wish to keep their business practices or trade secrets outside of the public domain then it is advisable to consider arbitration. The fact that proceedings tend to be faster, more cost-effective and private means that there is also less acrimony between those involved in the disputes.
- International Recognition: The results of arbitration processes are generally recognised around the world. They are also enforceable around the world.
- Expert adjudication: When it comes to arbitration cases the participants can be assured that the adjudicator is an expert in the field in question. This adds to the speed of the process as they have a detailed knowledge of the area in question.
As can be seen there are many advantages in choosing to go down the route of arbitration. Contact our arbitration lawyers directly if you require more information as to whether it is the right path for your dispute. In the next section we will outline the different forms of arbitration one can pursue – ad-hoc and institutional – and the advantages involved with these forms.
Ad-hoc or Institutional Arbitration
There are different manners in which arbitration cases can be resolved. Ad-hoc arbitration involves the parties deciding between themselves the rules which should be followed in the dispute. This form of arbitration can often be more cost effective in comparison to institutional proceedings. It also involves a greater degree of discretion and flexibility on the part of the parties. The rules chosen can be fitted to the requirements of the case and the parties in question.
However, it is valuable to avail of experienced arbitration lawyers in choosing to go down the route of ad-hoc arbitration. This is where our firm can ensure that the rules pursued in the arbitration are suitable to the conflict in question and that our clients do not face an inherent disadvantage. Furthermore, it is vital that the rules and procedures chosen by the parties are those suitable for fully resolving the dispute in question. Again, this is the value of availing of competent, professional and experienced legal counsel.
Institutional arbitration is another form of arbitration which can be pursued. This form is one in which a specialist institute is involved and takes on the role of looking after the process. Examples of such institutional arbitration administrators include German Institution of Arbitration (DIS), the Zurich Chamber of Commerce (ZCC), the Dubai International Arbitration Centre (DIAC), the London Court of International Arbitration (LCIA) and the Vienna International Arbitral Centre (VIAC). The advantages of institutional arbitration are:
- Both parties know the rules and procedures involved prior to the dispute,
- Both parties know the precedent in cases using the institutional rules and procedures,
- The format and procedure has been proven to work and has a history behind it,
- The institution in question will provide administrative help when it comes to hosting the dispute,
- Predetermined rules and procedures can save time as they do not need to be decided upon.
If your company needs more assistance in the area of either ad-hoc or administrative arbitration please contact us directly. Our arbitration lawyers will be able to provide more specific aid to determine the best course of action for your situation.