Arbitration

Arbitration can have different legal effects. If it is binding, the parties to the arbitration proceedings are bound by the findings of the arbitrator. If it is non-binding, the parties are not bound by the findings of the arbitrator. In non-binding arbitration, the arbitrator will still give their views on liability, and possibly quantum. However, neither party is legally bound by the arbitrator’s views.

Arbitration proceedings can either be commenced voluntarily, or they may be mandatory. They are likely to be mandatory if the contract between the parties states that arbitration must be used to resolve disputes.

In consumer contracts, the use of arbitration clauses to force parties to settle their disputes without going to court can be controversial. This is because normally such an arbitration clause is going to be put in extremely small print in the terms and conditions of the contract. It may be that the consumer does not read this clause before entering into the contract. They are therefore unaware that they are being denied their right to a court hearing if necessary.

Whether the use of arbitration clauses in consumer contracts is fair depends on the case. For example, if the clause was brought to the attention of the consumer before completion of the contract, it is likely to be seen to be fair. This is why when purchasing online you are asked to tick a box confirming that you have read the terms and conditions before committing to the purchase.

If you would like to obtain legal advice and information on arbitration, 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