Arbitration is a process of resolving disputes in which parties appoint an arbitrator or panel of arbitrators who decides on the matter by following a procedure agreed upon by the parties.
The following are the steps of the arbitration procedure. Take a look.
1. The process starts
Any party bound in an agreement can go for arbitration (usually called claimants). The claimant sends a notice of arbitration (called a Notice to request to arbitrate or arbitration application) to the other party involved in the dispute. The terms and conditions of the notice usually state where & how to give the notice.
The notice shall contain the following information-
● Name of both the parties with their addresses.
● Short description of the case.
● Expectations of the person starting the process.
2. Selecting the arbitrator
The process of choosing the arbitrator or agreeing upon the number of arbitrators required, is mentioned in the dispute document. If there is no such written agreement, the parties can agree & decide on appointing more than one arbitrator if required. Both parties involved must choose & agree upon the arbitrator. If the parties do not agree on the same arbitrator, the court shall appoint one for them.
3. Initial meeting
After choosing the arbitrator, the parties and the arbitrator shall have their first meeting. In addition, the parties may also retain legal counsel to attend & represent them at the arbitration. This initial meeting is also called the pre-hearing examination. It gives the parties a chance to clarify any remaining issues that may affect the arbitration process. Such as the following-
● Identifying the reason for the dispute
● Deciding which form of arbitration to choose, whether oral, hearing, or in writing.
● Scheduling all the events like date, time & place of the arbitration hearing.
● Documenting the list of witnesses or any other expert called to provide evidence.
Also, both parties can have this meeting in person, on the telephone, or by having a video conference. It is the same as Russia’s arbitration.
4. Arbitration hearing
In this process, the arbitrator examines all the documents and gives the decision accordingly. The arbitrator can also ask for more documents or evidence related to the dispute while examining the case.
Usually, the parties go for a hearing method of arbitration. Hearings involve each party presenting their case, providing evidence, and examining witnesses. The parties may hire lawyers to represent them at the arbitration based on the complexity of the case and its monetary value.
5. Arbitrator Decision
After the hearing process, the arbitrator or the panel of arbitrators makes a decision that is final and binding for both parties. Then the result of the dispute is provided to both parties in writing. It includes an explanation of why they made such a decision and may also involve-
● One party making payment to another party
● Ordering injunction like refraining the party from selling a product
● Money rewards like one party paying arbitration costs with interest.
A court may review an arbitrator's decision, or parties may appeal the court based on the arbitrator's decision, subject to applicable law and any arbitration agreement that may exist between the parties.
6. Fees (costs) of the process
Both parties bear some costs in initiating and resolving disputes through arbitration. The cost involved in the process comprises of arbitrators' fees, the cost of experts, the cost of witnesses, disbursements, and other charges. This cost can differ as it depends on various factors, such as-
● A hearing facility fee and the attendance of an arbitrator for an oral or a written submission were necessary for the arbitration,
● Fees of the expert witnesses,
● How long has arbitration continued
● If only one party bears the arbitration cost
This fee is generally due when a copy of the notice of arbitration and its response is sent to the arbitrator.
To Conclude,
In this blog, we have covered the first & foremost steps of the arbitration process. To gain a deep understanding, follow Rattsakuten. They are the arbitration & dispute settlement firm in Stockholm.
It is a type of resolution which is used to settle the disputes outside of the courtroom.
In this case, disputed parties agree to let someone else listen to their problems and make decisions but without any rules and regulations.Follow Franklin I. Ogele for more upcoming informative posts.
