When trying to resolve a business dispute, formal litigation is normally used only as a last resort due to the expense, stress, and risk of an adverse cost order being made against you if you lose your case.
Dispute Resolution Solicitors are aware of the risks associated with litigation and will present a range of alternative dispute resolution methods, for example, mediation, adjudication, and arbitration to you.
Arbitration is particularly suited to business disputes, especially in cases where the parties or particulars of the dispute are spread across different legal jurisdictions. This is thanks to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention) which, among other things, allows for the enforcement of an arbitration award made in one signatory country against assets located in another signatory country.
What is arbitration?
Arbitration is an alternative dispute resolution method where an Arbitrator or a panel of Arbitrators is appointed to decide on a dispute. The Arbitrator’s decision is, in most cases, final and binding.
Your right or any other parties’ right to refer a dispute to arbitration depends on the existence of a contract, known as an arbitration agreement. Most commercial contracts include a clause regarding dispute resolution and an arbitration agreement can be an appendix to this clause. For maximum flexibility, arbitration agreements can be entered into after a dispute arises.
How does arbitration work?
When entering into an arbitration agreement you and the other parties will agree to refer all or certain disputes to an Arbitrator who will decide on the rights and obligations of each party. You will also need to stipulate the country in which the arbitration hearing is to take place, the type of arbitration, and the rules and procedures applicable to the process.
>> Watch our video How to resolve a business dispute to learn more!
What are the advantages of choosing arbitration in a business dispute?
There are several advantages of choosing to arbitrate a commercial dispute, including:
- Through the arbitration agreement, you get to decide on the particulars of the arbitration process and who the Arbitrator/s will be and the qualifications/experience they must have.
- An Arbitrator’s decision is final and binding with most jurisdictions offering limited avenues for appeal. Under English law, the time limit for challenging an award is 28 days with limited exceptions.
- Arbitration is normally quicker than litigation.
- The process and the award can be made confidential between the parties.
- You can choose an Arbitrator who has experience in the area relevant to the dispute.
Wrapping up
Arbitration provides considerable benefits to SMEs involved in business disputes. To find out more about this alternative dispute resolution (ADR) method please contact our expert Dispute Resolution Solicitors today.
Get legal assistance from LawBite
Need legal advice? At LawBite our expert lawyers are ready to help you.
We are proud to provide professional arbitration services to small businesses in the UK. Our arbitration lawyers and solicitors can support you with the following:
- draft Arbitration clauses to go in contracts
- help persuade the other party to accept Arbitration if it is not included in the contract
- assist you with sourcing an accredited third party arbitrator
- provide arbitration advice on how best to prepare for the arbitration
- attend any arbitration meetings or hearings with you
- help you present or defend the claim by providing expert arbitration advice
- help you negotiate a settlement of the claim with the other side on the best terms for you
Our arbitration services are designed to give you the best possible chance of resolving your dispute. Contact us today to discuss how our arbitration lawyers can help get the best result for you and your business.
