Arbitration

Arbitration

An alternative means of resolving disputes that differs fundamentally from litigation in several respects:

 

  • The parties’ rights and obligations arise contractually from their agreement to arbitrate (usually concluded before the dispute arose and as part of a wider commercial arrangement)
  • The parties normally decide where the arbitration is to take place and the geographical and legal jurisdiction to which it is tied (‘the seat’)
  • The parties can also choose the arbitral body and thereby the arbitration’s procedural rules
  • The parties may have some choice in the appointment of the arbitrator(s), but have to pay for their services.  The cost can be significant
  • Arbitration is generally confidential
  • The arbitrator(s) powers derive from the arbitration agreement, as supplemented by any applicable legislation (in England, the Arbitration Act 1996)
  • Decisions are usually final and not subject to appeal
  • Arbitration awards are widely enforceable abroad by virtue of several conventions, in particular the New York Convention

Glossary

Understand the language of Litigation Funding by using our free Glossary.