Alternate Dispute Resolution Essay

775 WordsSep 4, 20144 Pages
Arbitration For a dispute to be resolved through arbitration it is necessary that the two parties had agreed and had a clause on arbitration as the dispute resolution procedure at the time of getting in to the contract. Disputes arising from the contract will be referred to the arbitrators. It is a dispute resolution process where the opposing parties select or appoint an individual called an Arbitrator or a panel of arbitrators. Usually one arbitrator is appointed from each party and the two arbitrators appointed will select the third arbitrator to act as the chairman of the panel. Upon appointment, the Arbitrators will arrange the process to hear and consider the evidence, review arguments and afterwards will publish an award in which the items of dispute are decided. Legislation governing arbitration in Sri Lanka is the Arbitration act of 1995. Main highlights of this act include Safeguarding party autonomy with regard to arbitration procedure, eliminate interference of courts, possibility to exclude appeals to supreme court, provision for enforcement of foreign arbitration award. Advantages of arbitration includes less cost compared to litigation, non disclosure of company information as it is privately held and flexibility. But the companies are bound to accept the decision of the arbitrator and it will create a win lose situation. Arbitration is today most commonly used for the resolution of commercial disputes. It is also widely used in international commercial transactions. Arbitration is most suitable when * The issue is already a win-lose situation. * The parties agree that they will abide by an arbitrator’s decision. * They do not need the court to enforce the decision which would make the dispute public In arbitration the parties give up their power to agree on a decision and empower the arbitration board to give the final decision.
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