Alternative Dispute Resolution- arbitration Flashcards
what type of matters is alternative dispute resolution used for
civil matters
what is adr
It is a way of avoiding going to court to resolve civil law matters, which differ from criminal law matters as parties are making a choice to go to court, rather than being forced to go due to being charged with a crime.
what are the 4 different methods of adr
arbitration
mediation
conciliation
negotiation
what act is needed for arbitration
Arbitration Act 1996, s.1
what does the Arbitration Act 1996, s.1 say
Decision is made by a Third Party Arbitrator (or panel of arbitrators)
arbitration process (5)
Parties choose to go to arbitration, sometimes as the contract between them requires it
An arbitrator is appointed by the parties (either named in the contract or the process to appoint one is explained in the contract)
Both parties present their case to the arbitrator separately. This can be by way of a report in a ‘paper hearing’ but can be in person like a hearing or on Teams
The arbitrator then considers each side and makes a decision
This decision is binding and there are not automatic rights to appeal it
what is a binding decision
This is when an agreement between the parties is set in stone
Failure to follow the terms of a legally binding agreement can result in court action and potentially prison for contempt of court as it is effectively ignoring a court order
types of cases this is used for
most frequently with commercial contracts between businesses
case example
scott v avery
what does this case mean
Where a contract includes a Scott v Avery clause (which is common in business agreements), the court will refuse to look at a case until it has been through arbitration first
when is arbitration usually used
most frequently with commercial contracts between businesses
what is a benefit to businesses of arbitration (3)
Private- means it is often used by businesses who want to keep disputes out of the media in order to preserve their reputation
Legally Binding decisions are made- decisions made by arbitrators can only be appealed for irregularity (e.g. bribery) OR if the arbitrator is shown to have interpreted the law incorrectly
The hearing is set at a time and place to suit the parties or can be all done through paper/electronic reports with no need for a fixed meeting
what is legally binding
This is when an agreement between the parties is set in stone
Failure to follow the terms of a legally binding agreement can result in court action and potentially prison for contempt of court as it is effectively ignoring a court order
