Arbitration, a form of alternative dispute resolution (ADR) is a technique for the resolution of disputes outside the courts. At present, Alternative Dispute Resolution is one of the most effective and affordable dispute resolution method.
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We’ll be glad to suggest arbitration as the best, most cost-efficient and simplest procedure to our clients As experienced Dubai legal professionals, we assure speedy justice to our clients by way of arbitration.
What is Arbitration?
An Arbitration Agreement is concluded between two or more parties to withdraw a certain dispute (or disputes) from the jurisdiction of national courts, and to authorize a sole arbitrator or an arbitral tribunal formed of more than one arbitrator to settle it (or them) by means of a final binding award (or awards).
But Why Arbitration?
Arbitration has advantages, that litigation from its nature, can never provide. One such is that the arbitrator or arbitral tribunal understands the language of the contract and is expert in the field of the dispute, and so the entire procedure can be conducted without the intervention of lawyers or experts, with consequent gains in speed and economy.
What are the advantages?
The privilege of choosing the applicable law on the substance:
Parties who desire to avoid national law rules unsuitable to international trade can choose the law or rules applicable to the substance of the case.
The privilege of choosing the rules of procedures:
The parties have a wider choice of procedures in arbitration than in litigation; they can choose the law or rules applicable to proceedings. For instance, they may choose to have the case decided on the basis of documents only (without hearings).
Selection of qualified arbitrators:
The Parties can choose as arbitrators the qualified persons for the subject of the dispute. If they cannot agree upon a particular person or persons, they can almost invariably agree upon some institution to make the appointment, and thereby agree upon the qualifications of the person or persons to be appointed.
Avoiding different levels of litigation:
Litigation requires more time, and judgments are subject to appeals and different levels of litigation, with corresponding delays and added expenses.
Confidentiality is not secured in litigation but may be generally secured in arbitral process. It is generally accepted that parties when faced with disputes deem the confidentiality of arbitration as an important factor in favoring their choice. Confidentiality of arbitral process is usually taken to be one of the advantages.
Choosing a neutral place of arbitration:
In arbitration, the hearings (if there is to be one) and any preliminary meeting can be held in a place of the parties’ choice. Apart from its great convenience in some cases, it can in neutral territory rather than on what is perceived to be the home territory of one party.
The possibility of resolving the disputes on the basis of documents only:
The parties may agree in some disputes to resolve their disputes by arbitration on documents only without a hearing.
Choosing the language of the proceedings:
The parties may choose the language or languages of the arbitral proceedings.
Cost of arbitration:
With reference to the advantages of arbitration, cost is mentioned as one of the controversial issues. Arbitrators and arbitral institutions are (highly) paid by the parties, while in courts lower fees are paid to the courts and none to the judges, however, this is arguably outweighed by the losses resulting from delays and repeated appeals.
The application of the New York Convention:
The New York Convention of 1958 provides, in many cases, a better means for forcing awards in foreign countries than the equivalent enforcement procedures for judgments.
In conclusion, it may be said that arbitration offers the parties advantages and liberties unavailable in the courts.