To Arbitrate or not to Arbitrate?

You may not have a choice.

What is Arbitration?

Arbitration is a strand of Alternative Dispute Resolution which has a contractual and judicial element attached to it.

The decision to refer a dispute to Arbitration will ordinarily stem from an agreement between the disputing parties, otherwise known as the “Arbitration Agreement”, where it states that in the event of a dispute, the matter is referred to Arbitration.

Arbitration itself means that when a dispute is initiated through this process, it will be referred to a Tribunal who will have the requisite power to hand down a decision that binds the parties.

What will the Arbitration Agreement state?

Subject to the agreement itself, the Arbitration Agreement will set out details of the process out further and in particular:

• How many Arbitrators will be needed;
• Whether the Tribunal will consist of one individual or three,
• Costs of the Arbitration process; and
• When the Arbitration will be held.

Why should I Arbitrate when I can go straight to Court?

The Court process is lengthy, costly and uncertain whereas the Arbitration process is far more attractive.

Once Arbitration proceedings have been initiated, the process from initiation to a hearing is rather swift.

This will have a significant impact for both parties in that there is certainly with time and legal costs. This is because once the matter proceeds to a final hearing and an award produced, such an award is binding on the parties unless challenged.

At Franklins, we understand that you want a quick resolution that is also cost effective. We will work with you to provide specialist advice and ensure a full case plan is prepared to outline your options and next steps. For advice, contact the Dispute Resolution team on 01604 828282 / 01908 660966 or email Litigation@franklins-sols.co.uk.