Should you consider Arbitration? | Hudson McKenzie

Should you consider Arbitration?

Clients undergoing a dispute may be advised to seek Arbitration as a form of ‘Alternative Dispute Resolution’ (ADR) instead of going to court – but is this a good alternative?

Arbitration is a common ADR for most commercial disputes, so as to not waste court time and money. Through Arbitration, the conflicting parties can find a ‘common ground’ as a form of compromise upon the dispute in question, without the need to go through any judicial proceedings. However, what are the pros and cons of using Arbitration?

Advantages

  • Choice: Parties can choose their own tribunal, but they cannot choose the judge if they go through to judicial proceedings instead.
  • Quicker: Choosing Arbitration is a faster process and alternative that if the dispute was taken to court.
  • Confidential: Arbitral decisions can be kept private, which isn’t necessarily the case if taken to court.

Disadvantages

  • Rights: parties may be compromising their rights to have a judge and jury decide the case if their arbitration is mandatory.
  • Limitations: Arbitration is likely to have limited enforcement powers and grounds for appeal.
  • Time consuming: Although thought to be a quicker process than going to the courts, in some cases arbitration can still be a lengthy process.

Therefore parties should decide carefully by weighing out the pros and cons of arbitration first, before deciding whether it is a better alternative than taking the case to the courts.

If you would like to discuss this article further or have any general legal enquiries, please contact one of our highly qualified solicitors on 020 3318 5794 or via email at londoninfo@hudsonmckenzie.com

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