TOPIC: SCOPE OF ARBITRATION IN LEGAL FIELD / MERITS & DEMERITS OF ARBITRATION.

Author : Lawvs

Posted on : 01-Nov-23

TOPIC: SCOPE OF ARBITRATION IN LEGAL FIELD / MERITS & DEMERITS OF ARBITRATION.


SCOPE OF ARBITRATION IN LEGAL FIELD / MERITS & DEMERITS OF                                                                                      ARBITRATION.    
                          BY- ELOISE HERVE NIYONKURU

 Introduction

 Overview

"In a world with lots of arguments and fights, people need ways to make peace. One way is called Alternative Dispute Resolution (ADR), which includes talking it out, finding middle ground, or getting help from someone else.

Arbitration is one way to resolve a fight. It's like having a referee. The referee listens to both sides and then makes a fair decision. This helps everyone because it saves time and money, and it leads to a fair solution."

Arbitration was entrusted as the parties are freely and flexible to choose the arbitrators, many countries adopted this mode of dispute resolution as it has many merits.

Chap 1.2. The Concept of Arbitration

Chap 1.2.1. Definition

Arbitration refers to a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute.1

As the judges on the bench must not have the side, when the parties in a disputed cases chose freely to use arbitration as a best mode of the disputes resolution, and agree to arbitrate choose the arbitrator and the arbitrator or arbitrators over the disputes hearing must neutral and impartial to hear the case so that they can draw a best and fair decision the parties must be equal with same rights to be freely to express their facts after hearing the case, make a fair decision which is binding to all parties. So the final decision or the decision rendered by arbitrators almost are enforceable.

 

 

 

 

 

Chapter 2. The Scope of Arbitration

Arbitration covers a wide range of areas such as commercial disputes, medical disputes, a family disputes, sports disputes, Intellectual property, International property, disputes between a health care provider and patient, etc……

The most interesting things is that this mode of disputes resolution mainly in the family disputes many people use it without knowing that it is the form of Dispute resolution, where after all methods in alternative disputes resolution which always comes before arbitration doesn’t work and also many people use to find a neutral party to help them in solving those disputes

 

"Reflecting on my high school final year, I recall a situation where a group of close friends found themselves embroiled in a dispute that led to their separation. In an attempt to resolve their issues, they initially resorted to self-help by individually examining the root causes of their disagreements. Unfortunately, this approach proved ineffective.

They also explored alternatives such as negotiation, mediation, and reconciliation. However, even with these efforts, none of them were willing to reconcile, and the situation began to have a negative impact on other students and our matron took notice.

Our matron called them into her office to hear them out and help mediate a resolution. Despite her best efforts, she realized that the depth of the conflict made it difficult for them to return to their previous friendship. Furthermore, as we were approaching national exams, it became clear that the ongoing tension would adversely affect their performance.

In the end, the matron made a difficult but binding decision. She asked the involved parties to go their separate ways and refrain from engaging in activities that could harm others. This decision allowed them to focus on their exams without external pressures. While it was a challenging decision, it ultimately led to a more peaceful and productive environment for everyone."

"Another example involves family disputes between spouses. Often, when issues arise, couples make an effort to come together and resolve their conflicts. However, there are situations where their problems become increasingly severe, and they turn to legal authorities for reconciliation. Yet, this approach doesn't always work due to the specificity of the issues and the underlying causes of the disputes.


In such cases, family members, especially in-laws, can play a pivotal role in resolving these disputes. Drawing from their own experiences, they can act as mediators and advise the couple. They may share their own experiences and encourage the spouses to emulate their example, fostering a peaceful environment in which the family can thrive."

 

Chapter 3: Merits of Arbitration

In almost times people do anticipate litigation mechanism to resolve their disputes but also people need to take a look depending on the kind of the disputes and for moving on the modern world we also have to take into account arbitration as a best mode of dispute resolution as it will help to reduce cases over load in the court and to reduce expenses sometimes, we are going to take a look on the merits of Arbitration as a mechanism for dispute resolution:

"Arbitration is efficient and flexible. It means problems get solved faster, and it's easier to pick a date. Unlike court trials, which can take years to schedule, you can usually arrange an arbitration within a few months. In court, you're competing with hundreds or even thousands of other cases waiting for their turn. But with arbitration, you can set a date that works for everyone involved, making it more convenient."2

Implicity: Arbitration simplifies the rules of evidence and procedure, in contrast to the complex and lengthy court litigation process. While court proceedings often involve a labyrinth of paperwork and motions, arbitration offers a more straightforward way to admit evidence. Additionally, the demanding and expensive discovery process, which includes interrogatories, depositions, and document requests, is often significantly streamlined in arbitration. In arbitration, decisions regarding witnesses and document production are usually made through simple discussions with the arbitrator.

Privacy: Confidential Resolutions: One of the standout advantages of arbitration is its ability to keep disputes out of the public eye. Unlike trials, arbitration provides a private setting where the details of the dispute and its resolution remain confidential. This level of privacy is particularly appealing to high-profile individuals or businesses involved in sensitive matters,


2  SAC Attorneys LLP (2022). The Advantages and Disadvantages of Arbitration | San Jose Corporate Lawyers. [online] www.sacattorneys.com. Available at: https://www.sacattorneys.com/the-advantages-and- disadvantages-of-arbitration.html.


as it ensures that all evidence, statements, and arguments remain entirely confidential. In court, even when certain records are not released, there is always a risk of potentially sensitive business information becoming public.3

Impartiality: Your Choice of Decision-Maker: In arbitration, the parties to the dispute typically collaborate to select the arbitrator. This means that both sides have confidence in the arbitrator's impartiality and lack of bias.

Cost-Effectiveness: Savings for Your Wallet: While it may not always be the case, arbitration is generally more cost-effective than litigation. The swifter resolution offered by arbitration often results in lower attorney fees. Additionally, the costs associated with preparing for arbitration are usually lower compared to the extensive preparations required for a jury trial.

Finality: Resolving Disputes Swiftly: In binding arbitration, the avenues for appeal are limited. This ensures a prompt and conclusive resolution, unlike court decisions, which can be subject to multiple levels of appeals, new trials, and extended legal battles.4

Chapter 4: Demerits of Arbitration

A significant drawback of arbitration is that the arbitration decision is final, and there is no formal appeals process available. Even if one party feels that the outcome was unfair, unjust, or biased, they cannot appeal it, which can be a significant disadvantage5.

Lack of Cross-Examination: In arbitration, the process typically relies on documents rather than live witnesses, which means that the parties involved are often unable to cross-examine witnesses. This limitation can be a disadvantage as it may impact the ability to challenge evidence effectively.

 

 

 

 

 


3  www.courts.ca.gov. (n.d.). ADR Types & Benefits - alternative_dispute_resolution. [online] Available at: https://www.courts.ca.gov/3074.htm#:~:text=ADR%20is%20usually%20less%20formal.

4 Ibidem


Limited Discovery: When arbitration is initiated after litigation has already commenced, both parties lose the cost-saving benefit of limited discovery. This can be a drawback, as the cost and complexity of the dispute resolution process may increase significantly.6

Chapter 4: conclusion

In conclusion, arbitration stands as a valuable mode of dispute resolution, offering efficiency, privacy, flexibility, and cost-effectiveness. However, its finality and limitations in terms of appeals and cross-examination are notable drawbacks.

The future of arbitration in the legal field appears promising, particularly in light of the increasing caseload in courts and the need for more efficient alternatives. Encouraging further research and discussion on the topic is essential to continue improving the arbitration process and expanding its scope in addressing a wide range of disputes effectively.

 

 

 

 

 



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