Arbitration procedure

An arbitration procedure can be varied and tailored to suit the needs of the different parties. This is one of the main advantages of using arbitration to resolve a dispute rather than court proceedings. In court proceedings, strict procedural rules must be followed, and parties can incur cost penalties for non-compliance with these rules. On the contrary, there is no stringent arbitration procedure.

It is normally left for the parties to agree an arbitration procedure. In some instances, the procedure may be set out in the contract between the parties. If it is not, the appointed arbitrator may set out the procedure for the parties to follow.

In some cases, the cost of arbitration proceedings may be fixed. This is known as the Fixed Cost Arbitration Procedure. This procedure is designed to limit the costs incurred in arbitration proceedings. Not all disputes are suitable for the Fixed Cost Arbitration Procedure, for example, disputes involving large sums.  The reason for this is that the amount awarded to the successful party in Fixed Cost Arbitration proceedings is capped.

If you think your dispute can be heard under the Fixed Cost Arbitration Procedure than you should consider using it. The benefits of the procedure are: 

• The costs are fixed so you know the limit of costs involved
• It is normally quite expedient
• It is possible to appeal the decision of the arbitrator if necessary 

If you would like to obtain legal advice and information on arbitration and the relevant procedures, Contact Law can put you in touch with a local specialist civil/commercial litigation / arbitration solicitor free of charge. So, if you have any questions or would like our help in finding local civil/commercial litigation / arbitration solicitors please call us on 0800 1777 162 or complete the web-form above.

Last Updated on 02/03/2010