ADR: Arbitration

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  • Created by: Eldred
  • Created on: 03-02-14 19:25
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ARBITRATION
Used for businesses only so they could deal with disputes more informally
Introduced in the 50s but now governed by Arbitration Act 1996
Used to be the only way you could resolve your case without going to court
Now not as popular and has been replaced by commercial mediation
Under this system Parties agree to submit claim to private Arbitrator
Can agree to do this at any time e.g. after court case has begun
Often there will be a clause in contract saying if there is a dispute parties will use
arbitration. (Scott Avery Clause)
Key elements:
1. Parties choose expert Arbitrator i.e. someone who knows about the area of
dispute. Institute of Arbitrators can provide names.
2. Form of hearing is up to parties. Can be in writing (ABTA takes 7 weeks, pay
£164, can award up to £15,000) or can call witnesses like court
3. Decision made by Arbitrator is final and binding
Advantages
1. Choose own Arbitrator who is an expert
2. Procedure flexible and can be quicker and cheaper
3. Award is final
Disadvantages
1. Over time procedure in commercial cases has become as strenuous as court
and as costly
2. Parties not in control as arbitrator makes decision like a judge
3. Fees of arbitrator can be high
4. No Legal Aid available
5. Limited appeal rights

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