An arbitration is a private dispute resolution process that has many similarities to a court proceeding. The parties present their cases to one or more arbitrators (usually an odd number to prevent a “tie”) who then impose a legally binding decision. Arbitration has many advantages over a typical court process, including:
While preparation for an arbitration is generally more extensive than a mediation, it is typically cheaper than preparation for a trial. Court proceedings often involve many fixtures (interlocutory applications) before the trial commences to determine ancillary matters. Arbitrations often dispense with such hearings. Additionally, discovery of documents can be highly targeted or even non-existent in an arbitration. Further, an arbitration undertaken online saves on travel, venue and accommodation costs (that can escalate if the dispute is not resolved in the time contemplated).
When you take a case to court you cannot choose your Judge. However, you can choose your arbitrator(s). This is particularly beneficial when you have a dispute concerning highly technical subject matter. CODR partners with many AMINZ certified and nationally recognised experts with specialised knowledge that are available to arbitrate disputes at short notice.
The pace of an arbitration is generally set by the parties to the dispute, therefore an issue can be resolved much faster by arbitration than it can in a courtroom.
By default, court proceedings are open to the public. As arbitrations can remain confidential it often leads to many commercially or personally sensitive matters being arbitrated (or mediated).
Commerce is becoming increasingly international, and along with that comes cross-border disputes. Arbitration can help to circumvent jurisdictional issues as because of the New York Convention 1958, arbitration awards can be easier to enforce in other nations than court decisions.
Even a seemingly straight-forward dispute can often have many dimensions that reveal themselves once the resolution procedure begins. If you are interested in finding out more, please make an enquiry, or call 0800 CODR 00.