What is Arbitration?
Arbitration is the resolution of a dispute by a neutral third person who hears arguments, reviews evidence, and issues a legally binding decision called an arbitration award. It is less formal, less expensive and more expedient than litigating the dispute in court. The Independent Film & Television Alliance (“IFTA”) administers the IFTA Arbitration service.
Arbitration is another form of alternative dispute resolution. In Arbitration, the parties agree to have a neutral third party, called an arbitrator, decide how their dispute should be resolved. Arbitrations can be held with one arbitrator or a panel of three or more arbitrators, whose consensus decides the outcome of the dispute. Arbitration can be either binding (in the sense that the parties agree to abide by the arbitrator’s decision) or non-binding (in which case the parties may pursue other means of resolving their dispute, such as litigation before a judge and jury). An overview of the Arbitration Process is available for download here.
A. Arbitration is a hearing that resembles a trial. The parties may call witnesses, introduce evidence and object to proffered evidence. Unlike mediation, at the end of the arbitration hearing the arbitrator issues an award. That award is either “binding” (permanent) or “non-binding” (may be rejected). It is binding if the parties agree before hand that the award will be permanent, such as in a contract executed by the parties prior to dispute. If the court orders that the parties participate in arbitration, it is typically non-binding and either party may reject the arbitrator’s award and proceed to trial.
Arbitration is where parties state their views, offer evidence at an arbitration hearing, and agree to let an impartial, professionally-trained arbitrator make a decision that will end the dispute. In most cases, once the arbitrator hears the evidence, he or she hands down a binding decision. There is, however, also non-binding arbitration where the disputing parties put their case before an impartial third party who renders an opinion or recommendation, which the parties may choose to accept or not..
Related Questions
- What is the role of the Hong Kong International Arbitration Centre (HKIAC) in the dispute resolution process regarding CN domain names or Chinese domain names?
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