ADR

Question 1

What is Arbitration?

Answer 1

Arbitration is where both parties voluntarily agree to submit arguments to a third party arbitrator to make a ruling on their dispute.
Arbitration is private, So it is commonly used by businesses and commercial cases, such as building contracts and mobile contracts.

Question 2

What is stated under the Arbitration Act 1996, s.1

Answer 2

Decision is made by a third party arbitrator (or arbitration panel)

Both parties present their case to the arbitrator separately (can be paper hearing if agreement allows or may be a formal court-like hearing)

Arbitrator reads both sides of the argument and makes a legally binding decision (the award) that is imposed on the parties

There are no automatic rights to appeal this decision – only if there is a serious irregularity

Where the contract between the parties has a Scott v Avery clause (which states they will use arbitration if an issue arises), any court will refuse to hear the case until the parties have attempted to go through arbitration first

The contract between the parties can sometimes name a specific arbitrator that the parties agree to in advance, or court can appoint an arbitrator