Alternate Dispute Resolution Essay

1435 WordsJan 27, 20116 Pages
Alternate dispute resolution Litigation has a number of drawbacks as a way of settling civil disputes, and does not always lead to the best result. • It is expensive and slow, and gives a clear advantage to a wealthier party who can string out the proceedings until the other runs out of money. • It is unsuited to disputes involving technical issues with which an ordinary judge is unlikely to be familiar. • It is adversarial, with each side trying to gain as much and give away as little as possible, without regard to what would be a fair solution. • It tends to destroy harmonious personal and business relationships, both while it is in progress and for ever afterwards. For these and other reasons, there are several alternative ways of resolving disputes that may be more appropriate in particular cases. Arbitration Arbitration is a step away from formal litigation, but shares with it an essentially adversarial process and the fact that the ultimate decision (made by a third party) is binding. It has been around for several hundred years, and is common in public international law and international trade, but arbitration may be an option in domestic law too. Its distinguishing feature is that the parties in dispute agree to accept as binding the decision of an independent third party, and to waive other rights of action. The parties may include an arbitration clause in their original contract, committing themselves to accept arbitration should the need arise and specifying the arbitrator or the process of appointment (for example, nomination by the Chartered Institute of Arbitrators.) Alternatively, parties already in dispute may voluntarily agree at that stage to refer the matter to arbitration rather than pursue other remedies. The costs of arbitration (including the arbitrator's fee) are paid by the parties in whatever proportions they may agree.
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