When legal disputes arise not all cases are relegated to the court, in certain instances both sides can resolve the dispute amicably outside the courts. Arbitration officially entails the ability to resolve the disputes legally outside the official court setting. Arbitration is often used to resolve commercial disputes, international commercial transactions, and employment contract disputes.
How Arbitration Works
In order for the arbitration process to function effectively both parties should include all relevant information in the arbitration agreement. The arbitration agreement should outline specific procedures that will apply should a need for arbitration arise.
When an arbitrator has been selected the disputing parties will be given a chance to discuss the issue by disclosing documents and taking into account witness statements. After the negotiation process has been completed, the arbitrator who acts like a private judge will pay close attention to the negotiation details. The parties may then submit a statement on the case outlining their views, facts and opinions. When all the facts have been presented and the hearing has been finalized, the arbitrator will issue the decision.
Legal Arbitration Terms Explained
Arbitration can either be voluntary or mandatory depending on the agreement contract both sides have signed. Mandatory arbitration can only come from a contract in which both parties agreed to handle all disputes with arbitration without knowing beforehand whether a dispute will arise.
Furthermore, the arbitration proceeding can be binding or non-binding. Non-binding arbitration is like mediation, implying that a decision cannot be imposed on both parties. Binding arbitration on the other hand, means that both sides agree to submit the dispute to a neutral arbitrator who agrees to resolve the conflict by rendering a final say on the matter and then issuing the award of money damages.
Advantages and Disadvantages of Arbitration
Arbitration has many advantages over seeking to solve disputes in court. In stark contrast to the court setting, arbitration allows you to chose the arbitrator or the judge, whereas in a court that would not be possible. Furthermore, arbitration proceedings can be kept confidential and do not need to be made public. The disadvantages of arbitration include ancillary agreements that might not be boldly stated and are often ignored. Unlike a court there are limited avenues to appeal, and when there are multiple arbitrators on the panel this may lead to delays.
Arbitration Law In Switzerland
The Swiss arbitration rules have been drafted cautiously and efficiently to correspond to international and civil regulations. According to the Swiss Chambers Arbitration Institution both parties are allowed to designate their arbitrators, select the applicable law and the language of the proceedings. Parties can select the seat of arbitration along with their own legal counsel as well. The revised Swiss arbitration draft took effect on June 1st 2012, it summaries several important facts including the scope of the application, number of arbitrators removal and replacement of an arbitrator and interim measures of protection.
FERZ SA advises clients on a number of legal issues with a solid and extensive experience in handling arbitration disputes. We assess the specifics of each new case paying close attention to the clients needs whilst offering the best legal advice.