Aside from going into the courtroom and getting a case resolved by a lawyer, there are other ways that a case can be resolved. Other alternative dispute resolutions (ADR) include mediation, Negotiation, Non-binding to be determined by experts, and arbitration. Our focus today shall be on arbitration.
It should, however, be noted that all the types we’ve listed here are not the same as arbitration because they are not always legally binding.
therefore, arbitration is a legal term that refers to resolving a dispute between two entities outside the courtroom. This type of dispute resolution refers to a situation whereby two entities in dispute ask a third person, who in this case is referred to as an arbitrator, to resolve their case.
An arbitrator will typically preside over the case as narrated by the two individuals, then pass the judgment to which the two entities will have no option order than to agree with the judgment the arbitrator made as regards the dispute.
How Does Arbitration Works?
We can liken arbitration to a small-scale trial before a full-scale lawsuit begins. This alternative dispute Resolution is great because it helps speed up dispute resolution before the court of law intervenes. Usually, when the court intervenes, it could cause the case to drag on for a long time without a meaningful resolution.
Arbitration as a dispute resolution is used mostly in commercial disputes, consumer disputes, credit obligation disputes, and state or investor disputes. It can also be used to resolve disputes among the family, laborers, or workers.
An arbitrator is an official person that will make the final decision. It’s also important to note that although they conduct Arbitration, Arbiters are not judges. They don’t have the power to determine a case’s winner and a loser. In short, they must have their resolution taken to court for final approval.
Also, in some disputes, a single arbitrator may not be enough. Therefore in this situation, an arbitral tribunal will be used. An arbitral panel, otherwise known as third-party deciders, is usually made up of more than one arbitrator that works together as a team to ensure that a case that doesn’t need to go to a full-scale trial doesn’t go.
The Arbitration Process
The same Arbitration process can not be applied to all cases. Hence the nature of the dispute an arbitrator presides over will ultimately determine what kind of arbitration process to be employed. However, one certain thing is that every arbitration process will begin with a notice of intent. A notice of intent means that the party filing the complaint will notify the accused about the said complaint. Then the two entities will wait patiently till the arbitrators are decided. Then after this, the hearing will take place.
Note that the arbitrators are not just chosen randomly; the two entities involved in the case will have a say in who gets to arbitrate the case.
However, the arbitrator’s failure to settle the dispute may result in the case being redirected to the court of law.
What Types Of Disputes Can And Can Not Be Solved Through Arbitration?
One of the most frustrating things about cases that get presided over by the court of law is the time it will take before they finally get resolved. In short, court cases can turn even a minor case into a large-scale one because courts are often congested with pending litigations.
Therefore, to ensure quick and easy resolution to disputes, the parties involved in the conflict are usually advised to follow alternative dispute Resolution (ADR) methods.
However, since ADR methods can be used for every dispute, what types of disputes can be resolved through arbitration?
· Civil And Commercial Disputes
Commercial disputes such as boundary disputes, tourist claims/disputes, business disputes, disputes regarding intellectual properties, copyright conflicts, and disputes between investors can be resolved through arbitration. This is because most contracts used in commercial settings often contain clauses that give both parties the right and privilege to use arbitration to resolve any conflicts.
If the contract does have this clause, and the two parties have agreed, the judicial court will command the parties involved in the dispute to resolve the issue through arbitration. However, as stated earlier, the arbitrator that will listen to each side and go through all the evidence before rendering any binding decision will be chosen by the individuals in dispute. In the court of law or ADR, equal representation will still be maintained.
· Criminal disputes
We must draw a line between private and criminal disputes between the two are distinctively different and dealt with differently.
While private civil disputes can be dealt with by arbitration, criminal offenders will have their cases filed in court. Almost all the countries around the world rightfully consider offenses such as rape, murder, fighting against the state and not individual, etc., as high-degree felonies. Hence, arbitration can not deal with situations like this because cases like this will involve lengthy investigation, interrogation of eyewitnesses (if there is any), trial, etc. Plus, arbitral panels do not give out punishments. The only things they give out as punishment are injunctions and sometimes compensation.
And since most of these offenses often affect an entire community, perpetrators of such offenses will have to be punished by the state law to serve as a warning to other people.
· Neighbor disputes
Neighbor disputes are another type of conflict that can be resolved through arbitration. Disputes can arise between neighbors because of many things, such as noise, overhanging tree branches, use of common property, privacy issues, the behavior of the children, etc.
It is always advisable to solve this dispute through arbitration because if it reaches the court of law, it can forever stain the relationship between the neighbors. And when this happens, there may be a general communication breakdown, and the neighborhood may get tensed before you know it.
Conclusion
If you need help understanding how arbitration works or what the state law says, don’t hesitate to book a session with us at Saanichton Law Group. Our qualified arbitrators can assist you in resolving legal disputes without incurring the costs, time, and complexities associated with civil litigation.
