Have you ever been in a situation where you had a problem with someone but didn’t want to go through the hassle or expense of going to court? Whether the issue is with a family member, friend, neighbor, or business associate, arbitration may be a good option for you. Arbitration is defined as a process whereby two parties agree to submit their dispute to one or more neutral third parties (arbitrators) for resolution.
Jeremy Schulman explains that Arbitration has many benefits over traditional litigation in court. It is usually faster and cheaper than going to court. It is also often more confidential than court proceedings. And, unlike going to court, arbitration gives the parties more control over the process, such as choosing the arbitrator (or arbitrators), setting the date and location of the hearing, etc.
- Domestic Arbitration is defined as arbitration that takes place entirely within the country in which the parties live or have their principal place of business.
- International Arbitration is defined as arbitration that takes place between parties from different countries. It can take place within one country but usually occurs in another country that has laws specifically designed to protect international commercial arbitrations.
- As mentioned above, one of the benefits of domestic arbitration is that it is often faster and cheaper than going to court. This is because the procedures for domestic arbitration are typically less formal than those for court proceedings and because arbitrators are not required to follow the same rules of evidence as judges.
- Another benefit of domestic arbitration is that it allows the parties to choose arbitrators who are familiar with the issues in dispute and who understand the applicable law. This can be especially important if the issues in dispute are technical in nature or if they involve foreign law.
- Finally, domestic arbitration is often more confidential than litigation because there are no public court records and because arbitral proceedings are typically not open to the public.
- International arbitration has all of the benefits of domestic arbitration, plus a few others. One benefit is that international arbitral awards are typically enforceable in courts around the world. This means that even if one party refuses to comply with an arbitral award, the other party can still enforce it in another country’s courts.
- Another benefit of international arbitration is that it provides greater flexibility when it comes to choosing the law that will govern the dispute; for example, if two companies have contracts with each other that contain choice-of-law clauses specifying which country’s laws will govern their disputes, they can still agree to submit their dispute to international arbitration.
- Finally, international arbitration can be less expensive than litigating in multiple countries because all proceedings can take place in a single location.
Whether you are involved in a domestic or international dispute, arbitration can be a great alternative to traditional litigation in court. It is usually faster and cheaper than going to court, plus it allows you more control over the process and can be more confidential too. So next time you have a dispute with someone, consider submitting it to arbitration!