arbitration

• arbitration

  • the most formal type of ADR
  • parties agree to have case decided by an independent arbitrator and are bound by the outcome
  • parties choose time, date and degree of formality as well as whether to have a hearing and its format
  • parties are free to choose who is the arbitrator in that case - lawyer or expert
  • if parties cannot decide of an arbitrator, institute of arbitrators provide skilled arbitrators if parties cannot agree
  • decision is final and can be enforced by courts
  • can be appealed to KBD of High Court on a point of law or if there has been a serious irregularity
• arbitration can take place within the court system as well as outside it. for example in family cases the parties can choose to go to arbitration and then have the award converted into a court order

  in other cases the court may allow a stay of proceedings to allow arbitration to take place
• advantages

  • arbitration is private which is beneficial as businesses may not wish to publicise their disputes. This can be important as it can help businesses which trade with each other to remain on good terms about the publicity of a court case.
  • arbitration allows the parties to choose their arbitrator in contrast to the court system where parties cannot choose the judge. The parties can also decide how and when the dispute will be heard allowing for the issues to be resolved at a mutually convenient time and way that suits them.
  • it is cheaper and quicker than going to court
• disadvantages 


  • there may be delays in obtaining an arbitrator and setting a mutually convenient date for the hearing and commercial arbitrators can be very expensive meaning not much of saving is made comparison to court proceedings
  • if the dispute involves a legal issue, it may not be one that is appropriate for an arbitrator to decide this is particularly so if one of the parties is hoping that the decision will set a precedent in their favour
  • The decision of the arbitrator cannot always be enforced in the same way that the court decision decisions can