Arbitration is a form of a private dispute resolution by parties to a dispute.
The dispute is decided by a single independent third party (the arbitrator) or by a tribunal of arbitrators (usually three in number). The parties may have formally agreed beforehand to resolve any dispute which might arise by arbitration, or they may decide to use arbitration to resolve their dispute once it has arisen (ad hoc arbitration). In the case where the parties have agreed beforehand to use arbitration to resolve a dispute they may have selected an existing arbitral organisation to manage the arbitration in accordance with its procedural rules, or alternatively they may have left open the process of appointment and arbitral procedure.
All Lexcore Members are competent and highly experienced international Arbitrators, either sitting alone or as members of a tribunal.
Arbitration is an alternative to litigation before a court. It is generally final and binding.
General principles of arbitration are as follows:
- The object of arbitration is to obtain a fair resolution of disputes by an impartial third party without unnecessary expense or delay.
- Parties are free to agree how their disputes are resolved, subject only to such safeguards as are necessary in the public interest. The arbitration is confidential.
- The courts do not interfere in the arbitral process (save in exceptional circumstances).
Arbitrators, or Tribunal members, are commonly appointed by one of three means:
- Directly by the parties in dispute (by mutual agreement, or by each party appointing one arbitrator);
- By existing tribunal members (for example, each parties appoints one arbitrator to the tribunal and then the arbitrators appoint a third); or
- By an external party (for example, the court or an individual or institution nominated by the parties).