Arbitration

Commercial cases are often resolved by arbitration. In order for a case to be solved by arbitration there has to be an agreement between the parties to that effect.

Often included as part of a contract, arbitration will in many cases be agreed before any dispute arises. However, the parties may also agree on arbitration after the falling-out.

Whether the parties agree on adhoc arbitration and decide on the rules of procedure themselves or opt for arbitration before a national or international institute of arbitration is very important, as in the latter case they will be bound by the rules of procedure of that institute. Of course, financial considerations play a part here, too.

Arbitration tribunals typically consist of one or three arbitrators appointed by the parties or in accordance with the rules of procedure of the arbitration institute. The costs of arbitration may be considerable. 

Benefits of arbitration:

• The parties have the possibility of appointing arbitrators with special knowledge about exactly the given subject matter
• Arbitration is not public
• The award is final and cannot be appealed
• Arbitration is faster, also because there can be no time-consuming appeal
• Greater responsiveness to compensation.

There are no second chances in arbitration, which is all the more reason to make sure you get the right arbitrators and the right lawyer.