evaluation of adr Flashcards
arbitration - what are the strengths and weaknesses
STRENGTHS
- choice
- process is flexible
- privacy
- low cost
WEAKNESSES
- legal point
- formal hearings
- delay
- limited appeal options
arbitration - choice
Parties can choose their own arbitrator and can therefore decide whether the matter is best dealt with by a technical expert, lawyer or professional arbitrator.
There is also provision in law for if the sides cannot agree.
arbitration - legal point
An unexpected legal point can sometimes arise which a technical expert cannot deal with and this can prolong the case or result in restarting proceedings with a lawyer instead - costing money, time and stress.
Professional Arbitrators also have expensive fees.
counter-point to choice
arbitration - process is flexible
The process is very flexible – can be held anywhere, at any time. This can be arranged to suit both parties.
The process is usually much less formal than court.
Flexible procedure – can be formal or informal. Can have witnesses or expert witnesses or not. Can be oral or written submissions
arbitration - formal hearings
Formal hearings are generally more expensive and take longer if witnesses and lawyers etc are involved.
counter-point to process is flexible
arbitration - privacy
The matter is dealt with privately and there is no public allowed in.
This protects the reputations of the parties and allows disputes to be solved confidentially.
counter-point to delays
arbitration - delays
Whilst it is private, the delays for commercial and international cases are almost as long as those in courts. This has resulted in a loss of popularity with companies, shifting a lot of emphasis back to the tax-payer paid courts or other forms of ADR.
counter-point to privacy
arbitration - low cost
Arbitration proceedings are usually significantly cheaper than court proceedings and is therefore an obvious benefit to the parties.
The award is also final and can be enforced by the courts
counter-point to limited appeal options
arbitration - limited appeal options
The rights of appeal are very limited so if you don’t like the decision you are generally stuck with it whereas in courts there are methods of appeal available.
counter-point to low cost