Is there a standard set of arbitration rules I should agree to use in a dispute?
Arbitration is increasingly being used by parties looking to resolve a commercial dispute whilst avoiding the time, cost and hassle associated with court proceedings. Parties to arbitration commonly engage a commercial solicitor for legal advice prior to entering into arbitration, and many retain their legal representation throughout the process.
As arbitration is legally binding on the parties to the dispute, ensuring your case is represented professionally is as important as if you were in front of a judge.
Among its many advantages, arbitration offers access to specialist, independent arbitrators with experience in the particular field in question. Often they will have both legal and industry experience, allowing parties to cut to the nub of a dispute without having to explain the basics to a judge with no prior knowledge or experience.
Both parties to a dispute must agree to the use of arbitration in advance, and as a result an arbitration clause is often included in industrial and commercial contractual agreements. Prior to signing an agreement however, it is important to know and be familiar with the rules that the arbitrating body is likely to follow.
There is no single standard set of rules used in arbitration. As a result, this element of arbitration can be somewhat confusing. Your commercial solicitor should be able to offer advice on the most appropriate for the type of contract you are entering into.
Two international organisations offer template rules which are followed by many arbitrating organisations around the world. The United Nations Commission on International Trade Law (UNCITRAL) offers a set of draft rules which are considered among the best. The International Chamber of Commerce (ICC) provide a competing set.
Several other organisations offer advice on the drafting of arbitration clauses, including the International Bar Association. There are no right or wrong answers, so it is worth consulting your commercial solicitor to ensure that the most appropriate set are selected for your business.
If you would like to obtain legal advice on how to deal with disputes, Caven can put you in touch with a local specialist solicitor free of charge. So, if you have any questions or would like our help in finding local solicitors please call us on 08001 221 2299 or complete the web-form above.
- Last Updated on 29/11/2012
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