One of the most common types of alternative dispute resolution includes Mediation and Arbitration. Arbitration is a form of alternative dispute resolution. That is alternative to litigating the matter in a court.
What is Arbitration?
Arbitration is the private determination of a dispute by an independent third party. The process of referring disputes to an independent third party for settlement is as old as Methuselah, however, arbitration is now carried out within a legislative framework. The two parties involved in the dispute agree to appoint an arbitrator to resolve the issues.
How is an Arbitrator appointed?
Arbitration is governed by the Irish Arbitration Act 2010 which came into force in June 2010 and which adopted the United Nations Commission on International Trade Law (UNCITRAL) Model Law on International Commercial Arbitration 1985 (as amended in 2006).
The agreement to appoint an arbitrator can be in the form of an arbitration clause in the original contract between the parties or it can be in the form of a separate arbitration agreement, even one made by the parties after a dispute has arisen.
Where parties have agreed by contract/agreement to deal with disputes by arbitration, the Court usually refuses to hear such a dispute unless, for example, the arbitration agreement is null and void, inoperative, or incapable of being performed.
Who acts as an Arbitrator?
The arbitration clauses in contracts or arbitration agreements should include provisions as to how an arbitrator is to be chosen by the parties and in the event that agreement cannot be reached about the choice, that the matter be referred to an independent relevant professional body (such as the Law Society of Ireland), to appoint the arbitrator.
Advantages of Arbitration
The parties choose the arbitrator and the procedure. The arbitrator’s decision (called an award) is final. It is binding and enforceable in the same way as a judgement or order of the High Court. It is confidential. The information presented to the arbitrator and the award is not part of the public record as with a trial. It is also informal (although more formal than mediation). It is completed more quickly and can be less costly than a court trial.
Disadvantages of Arbitration
There is almost no basis to appeal against an arbitrator’s award. There are very limited grounds that can be set out for an application to set aside an arbitrator’s award. If a case is being heard in court, the judge and the court facilities are free. However, in an arbitration situation, the arbitrator and the venue must be paid for.
Is Legal Representation necessary at an Arbitration?
At Cantillons Solicitors we can advise on all aspects of arbitration.
Contact us at Cantillons Solicitors at +353 (0)21 -4275673 or email@example.com if you would like more information.
* In contentious business, a solicitor may not calculate fees or other charges as a percentage of any award or settlement.