ADR-Arbitration Flashcards
(6 cards)
arbitration
Arbitration is where two parties voluntarily agree to have their dispute decided by an arbitrator or a panel of arbitrators. The decision to use arbitration will be in writing and can be taken before or after a dispute arises
Arbitration Act 1996.
Arbitration is governed by the Arbitration Act 1996. The aim of the Act is to obtain a fair and impartial resolution without unnecessary delay and cost. The date and time of the hearing will be agreed by the parties in consultation with the arbitrator. The parties in dispute are free to agree the number of arbitrators, this can range from a sole arbitrator to a panel of two or three. The parties can name the arbitrator or, if necessary, the court will appoint one
Scott V avery Clause
Scott v avery clause
Many commercial contracts have a clause stating that if a dispute arises the parties will settle their dispute by arbitration. This clause is called a Scott v Avery clause.
Arbitration hearing
Arbitration hearings can be formal or informal. The parties will agree the most suitable procedure for their case. This may be in the form of a paper arbitration where the arbitrator receives the arguments in paper form and no hearing takes place or the parties might decide that a more formal hearing is needed. In the first instance they will submit all the relevant documentation to the arbitrator. The arbitrator will later hear any oral submissions. This type of hearing will be like a court hearing and can include the calling of witnesses. The same court procedures as are available in legal proceedings can be used to ensure that witness attend
the decision in abritration
At the end, the arbitrator will come to a binding decision called an award. The arbitration award can be enforced in the same manner as a court judgement. This arbitration decision is final; however, it is open to challenge on the grounds of serious irregularity in proceedings or on a point of law. A good example of when arbitration is used is in holiday cases. The Association of British Travel Agents is a trade body offering arbitration services to those who have experienced problems with holidays booked through ABTA members.
Advantages and disadvantages of abritation
advantages of arbitration
cost and convienence
award is typically final and can be enforced by the costs
the disputes will be resolved more quickly than through a court hearing
it is informal
disadvantages of arbitration
lack of legal expertise
the rights of appeal are limited of a professional abritator is stated his fees may be expendsiv