What is arbitration? Arbitration is a formal method of alternative dispute resolution (ADR) involving a neutral third party who renders a binding decision in form of arbitral award. The award is on both sides legally binding and enforceable in the courts.
Advantages:
- The parties’ ability to choose what substantive and procedural law governs the arbitration.
- In contrast to litigation, where one cannot “choose the judge”, arbitration allows the parties to choose their own arbitrator(s). This is especially useful when the subject matter of the dispute is highly technical: arbitrators with an appropriate degree of expertise can be chosen.
- Arbitration is supposed to be faster than litigation.
- Arbitral proceedings (other than investor-state arbitration) and arbitral award can be made confidential.
- In arbitral proceedings the language of arbitration may be chosen, whereas in judicial proceedings the official language of the country of the competent court will be automatically applied.
- Because of the provisions of the New York Convention 1958, arbitration awards are generally easier to enforce in other nations than court verdicts.
- In most legal systems there are very limited avenues for appeal of an arbitral award, which is sometimes an advantage because it limits the duration of the dispute.
International Council 