Arbitration

Question 1

What is arbitration?

Answer 1

Arbitration, is a method of dispute resolution in which a third party will listen to both parties and if a decision is not made by either party, an arbitrator makes a legally binding decision.
It is conducted in private, and can be less costly and less formal than court procedures.

Question 2

How do courts use arbitration?

Answer 2

The magistrates, county and Supreme Court have power to refer all disputes to arbitration prior to a final hearing. For claims of less than 10k however, the magistrate can refer a dispute to arbitration by magistrate.

Question 3

How does VCAT use arbitration?

Answer 3

VCAT is able to refer parties to arbitration on the basis that it is a more appropriate forum. E.g: a contract between the parties, that dictates that disputes are to be resolved with arbitration.

Question 4

How does CAV use arbitration?

Answer 4

CAV does not use arbitration.

Question 5

How is arbitration privately used?

Answer 5

Parties may hire their own arbitrator and they can be found by the resolution institute or the Victorian Bar. The Supreme Court also offers support for parties in arbitration.

Question 6

Appropriateness of arbitration?

Answer 6

The appropriateness of arbitration in resolving disputes, will depend on the nature of the dispute and the parties involved.