The Role Of Arbitration In Dispute Resolution

Every business or other areas of human endeavour has some or the other kind of disputes in various spheres, To resolve these disputes parties will often seek an amicable resolution of whatever gripe they maybe harbouring. And as a result the role of third parties in assisting to resolve contentious issues becomes a pertinent one which requires careful and balanced handling, and in many cases arbitration is used as a settlement technique that involves third party input – it takes a resolute decision that is legally binding for the quarrelsome parties. Mediation is another form of alternative dispute resolution (ADR) in which a settlement negotiation is strengthened by a third party leading to a non-binding resolution unlike with arbitration that can be likened to litigation in courts. Arbtration is utilized by the cases involving Commercial disputes and this is usually the case with international commercial transactions. Consumer and employees cases often witness mandatory arbitration by virtue of the fine print contracts, and as a consequence this translates to the denial of the right to access the courts as individuals.

The difference between non-binding arbitration and mediation is that the mediator works to assist the parties to establish common ground from which they can reach a compromise, the arbitrator does not actively participate in the settlement process, but instead only offering a determination of liability or an indication of the quantum of damages payable. The practice of arbitration comes into picture since 16th century as the first act of law on arbitration was passed under English law, yet it had already begun before the official act was introduced. Greater sophistication brought about by the expansion in international trade transformed the procedures for resolving disputes between merchants, and as a measure aimed at resolving disputes under international commercial contracts, international arbitration was formally enacted as a variation. Further improvements to this harmony inducing settlement process led to the creation of an online arbitration process known as the online dispute resolution (ODR), it follows the filing of a claim online and as can be expected the entire proceedings occur over the internet with the final decision being made on the basis of case documents.

As far as advantages are concerned, arbitration takes over judicial proceedings in that expert arbitrators are called upon whenever a case pertains to highly technical issues, arbitration usually takes less time compared to litigation in court, and can be much cheaper and flexible. Proceedings in arbitration matters can be confidential unlike most cases, and disadvantages are that due to ancillary agreements on the ambiguity of the small print in the agreements. Consumers and employees often find themselves in a situation where they lack prior knowledge when purchasing a product or taking a job covered by mandatory arbitration which limits on rights to access courts of law. Other major drawback of this practice is that the recovery of attorney’s fees is unavailable and avenues of appeal are also very limited

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Law Offices of Bhalla and Cho, LLC provides quality and affordable legal representation in a wide variety of corporate, civil and criminal law matters. We are one of famous Hoboken Commercial Litigation lawyer, New Jersey Civil Rights AttorneyAuthor: Ravinder S Bhalla