Arbitration advantages and disadvantages

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Arbitration advantages and disadvantages

Advantages

  • Parties may choose their own arbitrator under Section 15 of the Arbitration Act
  • A question of quality can be decided by a technical expert being called in
  • The hearing time and place can both be arranged to suit both parties ( flexible)
  • The entire procedure used is flexible and the parties can choose that which is most suited to the situation
  • Matter is dealt with in private
  • Dispute will be resolved more quickly
  • Usually much cheaper
  • Award is normally final and can be enforced by the courts

Disadvantages

  • An unexpected legal point may rise which cannot be dealt with by a non-lawyer arbitrator
  • A professional arbitrator may have expensive fees
  • It will also be expensive if the parties opt for a formal hearing, with witness giving evidence on both sides and lawyers representing
  • Rights of appeal are limited
  • Delays for commercial and international arbitration are almost as long as court hearing delays

Evaluation

Overall there are more advantages than disadvantages as the amount of flexibility, success rates, privacy matters, and the fact that both parties can choose their own arbitrator the agreement to arbitrate can appear more satisfactory than the litigation counterpart however appeal rights are limited, the delay and cost can sometimes be just as long and an unexpected legal point may rise by which the arbitrator non-legal may not be able to deal with 

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