Frequently
Asked Questions
Arbitration is a dispute resolution process where parties agree to have their conflict heard by an independent third party, known as an arbitrator or a panel of arbitrators. The arbitrator(s) review the evidence and arguments presented by each party and make a binding decision, called an arbitration award, to resolve the dispute.
Unlike traditional litigation, arbitration is a private and consensual process. It allows parties to choose their arbitrator(s) and determine the rules and procedures governing the arbitration. Arbitration typically offers a more streamlined and flexible process, which can lead to quicker resolutions and reduced costs compared to court litigation.
Arbitration is commonly used for resolving commercial disputes, such as contract disagreements, intellectual property disputes, construction conflicts, international trade disputes, and employment-related matters. However, arbitration can be utilized for various types of disputes as long as the parties agree to submit their case to arbitration.
Some advantages of arbitration include confidentiality, flexibility, party autonomy in selecting arbitrators and procedures, potential cost and time savings compared to litigation, and the ability to choose an arbitrator with expertise in the subject matter of the dispute.
Yes, arbitration is generally legally binding. Once parties agree to submit their dispute to arbitration and the arbitrator(s) render an arbitration award, it carries the same legal weight as a court judgment. Parties are typically obligated to comply with the terms of the award, although enforcement procedures may vary across jurisdictions.
The duration of arbitration depends on the complexity of the dispute, the number of parties involved, and the willingness of parties to cooperate. While arbitration can generally be resolved more quickly than court litigation, it can still take several months to a year or more to complete, depending on the circumstances.
Confidentiality is one of the advantages of arbitration. Unless otherwise agreed by the parties or required by law, arbitration proceedings and the award are typically kept confidential. This confidentiality helps protect sensitive business information and maintain privacy.