What is Arbitration?
A rbitration, a form of Alternative Dispute Resolution (ADR), is a legal technique for the resolution of disputes outside the courts, where the parties to a dispute refer it to one or more persons (the “arbitrators”, “arbiters” or “arbitral tribunal”), by whose decision (the “award”) they agree to be bound. It is a resolution technique in which a third party reviews the evidence in the case and imposes a decision that is legally binding for both sides and enforceable. Arbitration is often used for the resolution of commercial disputes, particularly in the context of international commercial transactions. The use of arbitration is also frequently employed in consumer and employment matters, where arbitration may be mandated by the terms of employment or commercial contracts.
Arbitration can be either voluntary or mandatory (although mandatory arbitration can only come from a statute or from a contract that is voluntarily entered into, where the parties agree to hold all existing or future disputes to arbitration, without necessarily knowing, specifically, what disputes will ever occur) and can be either binding or non-binding. Non-binding arbitration is similar to mediation in that a decision cannot be imposed on the parties. However, the principal distinction is that whereas a mediator will try to help the parties find a middle ground on which to compromise, the (non-binding) arbitrator remains totally removed from the settlement process and will only give a determination of liability and, if appropriate, an indication of the quantum of damages payable. By definition arbitration is binding and so non-binding arbitration is not arbitration.
Arbitration is a proceeding in which a dispute is resolved by an impartial adjudicator whose decision the parties to the dispute have agreed, or legislation has decreed, will be final and binding. There are limited rights of review and appeal of arbitration awards.
Types of Disputes Arbitrated at the Centre
The Centre administers simple two-party disputes to complex multi-party matters, local and international, with claims ranging from several thousand to millions of dollars. The Centre is experienced in arbitrating the following types of claims:
1. Contact the DRC to request arbitration services
2. The DRC forwards its Request for Arbitration form to be completed by both parties or a joint letter is sent to the DRC with all relevant information. Parties may decide on an individual or a joint submission of this form.
3. Upon receipt of the completed form(s,) the Centre will prepare a list of potential arbitrators for consideration by the parties. Included will be the arbitrator’s profile and fees and the Centre’s administrative fees. This information is sent simultaneously to both sides. The cost of the arbitration is shared equally by the parties.
4. Upon notification of the agreed arbitrator, the DRC will coordinate with the arbitrator and the parties to commence the arbitration process
Rates are shared equally by the Parties and subject to VAT