Arbitration is a form of alternative dispute resolution (ADR). Like other forms of ADR, it is used as a method of court avoidance. In arbitration, an impartial third party, ‘the arbitrator’, hears the dispute between the parties. After hearing the dispute they come to a decision which is legally binding on both parties. Arbitration law allows either party to appeal to the court if dissatisfied with the arbitrator’s decision.
Arbitration law and rules are governed by the Arbitration Act 1996. Under arbitration law, arbitration can only be used as a method for resolving a dispute if both parties consent to using it.
Arbitration is being used more frequently due to its perceived benefits. It is private, often cheaper than litigation and also less formal than litigation. Arbitration has been used in widely in commercial contexts. For example, it is often used to resolve contractual disputes between businesses. Often, commercial contracts contain an arbitration clause. This clause basically states that in the case of any disputes between the parties, arbitration will be used to resolve them.
As arbitration law usually provides for the decision of the arbitrator to be legally binding, it is imperative that you instruct a solicitor to represent you in arbitration hearings. Arbitration hearings, although less formal than court, still require expert legal representatives to put forward your case as effectively as possible. Legal representatives can also help you appeal the decision of the arbitrator if you are not satisfied with it.
If you would like to obtain legal advice and information on arbitration and the relevant law, Caven can put you in touch with a local specialist Civil Litigation Solicitor free of charge. So, if you have any questions or would like our help in finding local Civil Litigation Solicitors please call us on 0800 1777 167 or complete the web-form above.