Arbitration is an alternative method of resolving disputes without going to court. It allows parties-whether individuals or companies-to resolve conflicts through one or more neutral third parties called arbitrators, who act like judges but often have industry-specific expertise. Instead of a court judgment, the decision made is called an “award,” which is legally binding and enforceable just like a court ruling.
Legal representation
Although there is no legal requirement to engage a lawyer for arbitration, the process can involve intricate procedural detail which makes representation advisable. A London law firm such as www.forsters.co.uk/, with extensive experience in the field, can help navigate the complexities of drafting, evidence, submissions and hearings.
The arbitration process
Parties generally agree to arbitration by including an arbitration clause in their contract or by making a separate arbitration agreement when a dispute arises. In arbitration, the designated arbitrator or panel, known as a tribunal, hears submissions from both sides, examines evidence and conducts hearings either in person or remotely. The tribunal then issues its award.
Outcomes of arbitration
Arbitration is distinct from court litigation in several ways. It offers greater procedural flexibility, allowing parties to tailor the process to their case. It’s often confidential, faster and easier to enforce internationally, due to global agreements recognising arbitration awards. This makes it popular especially in cross-border business disputes. Awards from arbitration are generally final, with limited grounds for appeal.
Unlike mediation, which is non-binding and facilitates negotiation, arbitration delivers a conclusive decision. This combination of flexibility, confidentiality, finality and enforceability makes arbitration an effective dispute resolution tool in international and commercial contexts.
