ADR - Arbitration
- Created by: Hayley Petts
- Created on: 16-01-13 20:15
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- ADR - Arbitration
- parties agree to let third party make a BINDING decision without use of courts
- commercial contracts contain a SCOTT v AVERY CLAUSE
- stating that any disputes between parties will be resolved through arbitration
- Arbitration Act 1996 - if action is started in court other party can apply to court to enforce clause
- Arbitration Act 1996
- allows parties to reach a fair way of disputes in an impartial way without delay or expense
- parties can agree on no. of arbitrators
- one if they cannot chose under s.15
- agree procedure to appoint one
- Institute for Arbitrators provides them
- last resort court will provide lawyer
- The Arbitration Hearing
- parties decide on hearing they want
- "paper" or oral or mix
- can be on an oath
- often used by construction, shipping, re-insurance industries
- arbitrator supposed to conduct proceedings in judicial manner
- parties decide on hearing they want
- The Award
- decision made by arbitrator binding parties
- can be enforced through courts if needed
- can be challenged if serious irregularity
- under s.68 of Arbitration Act 1996
- Advantages
- experts understand problems - saving time
- chose time and place to suit both parties
- informal, private, no publicity, quicker and cheaper
- binding award
- suited to business disputes where they have little hope in finding common ground to make mediation realistic
- parties chose arbitrator
- chose whether they want a lawyer, technical expert or professional arbitrator
- Disadvantages
- no legal aid
- unexpected legal point may occur
- not suitable for non-lawyer arbitrator
- limited rights to appeals
- can be expensive for professional arbitrator
- if they decide on formal hearing costs of witnesses and lawyers representing both sides
- can be delays if professional if used in commercial + international arbitration
- decreased popularity
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