Arbitration Rules
The choice of arbitration.
With all the other means of resolving disputes available, why should anyone choose to arbitrate? After all, the parties, or one of them, must pay the fees of the arbitral tribunal and the expenses of the venue, whereas a judge and the use of the courts largely come free. There are several reasons why parties agree to arbitration.
Privacy and choice in the tribunal.
Mention has already been made of the privacy and confidentiality of arbitration proceedings. Some parties prefer to know in advance that their disputes will be determined out of the public gaze. The right to choose or to have a say in the choice of one or more members of the arbitral tribunal is also regarded as an advantage. Even if the degree of influence is minimal because the choice is left to an appointing authority, there has never- theless been some involvement in the selection process by agreeing to that appointing authority, and the parties may take comfort from the institution’s previous experience of appointing and working with particular arbitrators. Parties
find it reassuring not to be dependent on the luck of the draw from a court list 10 Further, some disputes involve highly technical issues and it can be useful to have at least one member of the tribunal who is familiar with the technical issues or applicable law by virtue of his training and so does not have to be educated by the
parties in order to understand them.
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Flexibility.
Arbitration can be much more flexible both in time and procedure. If the dispute needs urgent resolution, the parties can choose a tribunal who will act promptly rather than wait their turn in the queue. 109 As arbitration is con- sensual, the parties can choose the most suitable procedure. Neither they nor the tribunal are tied to formal rules of court. Written submissions in letter form may be appropriate for a dispute over the interpretation of a written agreement, whereas examination of witnesses may be required for the determination of disputed facts. The parties can also be represented by anyone of their choice because they are not bound by rules limiting appearance to persons with particular legal qualifications.110
Neutrality and equality.
Where the parties come from different countries, arbitration may be preferable to litigation because quite often neither party is willing to submit to the jurisdiction of the national court of the other. Arbitration offers them neutrality in the choice of law, venue, procedure and tribunal. The parties may agree upon the law and procedure of a third country or leave the choice to the tribunal. They can appoint an arbitrator from another country or request an international arbitral institution to make the appointment either of the sole arbitrator or one or more members of the tribunal. In so doing the parties may be more confident that there will be equality of treatment.
Enforceability of award.
A further important advantage of arbitration is the extensive enforceability of the award. Having incurred the cost of proceedings, a successful claimant wants to be in a position to enforce the award, if necessary.
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