Commercial dispute resolution: arbitration
Arbitration as an option for resolving commercial disputes, organising an arbitration, setting rules and choosing and arbitrator.
Arbitration is a way to resolve disputes. The parties agree to let an impartial, independent third party (the arbitrator) decide the outcome based on the issues presented. The arbitrator's decision is final and binding.
Organising an arbitration
The disputing parties can choose where to hold the arbitration. They can also choose the arbitration panel's members and the procedure to follow. Arbitrations are normally confidential, and this may be attractive to parties wishing to avoid the negative publicity that open court proceedings might risk.
When the parties decide to use arbitration, the rules of arbitration will also be agreed. Those rules will include:
- the conduct of the arbitration, including the documents to be shared between the parties
- the procedure for the appointment of an arbitrator
- the procedure for the arbitration itself (including statements of claim and defence)
- the time limits
Arbitration is suitable for disputes across different countries because the decisions are internationally binding.
Choosing an arbitrator
Arbitration is a good option when the dispute arises from technical or operational issues because the parties will be able to choose arbitrators with expertise in that particular field.
No legal qualifications are needed to be an arbitrator, so the parties could choose a member of a regulated professional body (for example, a chartered accountant or a chartered surveyor).
Further information
The provides further information.