What Is It?

Arbitration is a process whereby parties agree to refer their disputes to an arbitrator instead of the courts. The arbitrator acts like a judge and his decision is binding upon the parties. The arbitrator works to rules agreed between the parties or, if no such rules are agreed, as laid down by the Arbitration Acts. The arbitrator is usually an expert in the subject matter of the dispute. A major advantage is that it is a confidential and private process.

When is Arbitration Appropriate?

Arbitration is appropriate in almost all circumstances where litigation before the courts is considered appropriate. However, it is particularly appropriate where the parties believe that it is important that the party deciding upon their dispute (the Arbitrator) should have a detailed knowledge of the subject matter of the dispute. It is also particularly appropriate in circumstances where the parties would not want the media reporting upon the dispute.

What Does It Cost?

Arbitration costs roughly the same as litigation before the Courts. There can be savings in some elements but they are offset by the fact that the parties have to pay for the arbitrator and the venue but not for the judge or the Court. An arbitrator has the same powers as a judge to award costs against an unsuccessful party.