Arbitration is a proceeding in which a
dispute is resolved by an impartial adjudicator whose decision the
parties to the dispute have agreed will be final and binding.
Arbitration is not the same as:
judicial proceedings, although in some jurisdictions, court proceedings
are sometimes referred as arbitrations
alternative dispute resolution (or ADR) expert determination
mediation
Advantages of arbitration
Parties often seek to resolve their disputes through arbitration because
of a number of perceived potential advantages over judicial proceedings:
when the subject matter of the dispute is highly technical, arbitrators
with an appropriate degree of expertise can be appointed arbitration is
often faster than litigation in court arbitration can be cheaper arbitral
proceedings and an arbitral award are generally private
the arbitral process enjoys a greater degree of flexibility than the
courts because of the provisions of the New York Convention 1958,
arbitration awards are generally easier to enforce abroad than court
judgments in most legal systems, there are limited avenues for appeal of
an arbitral award, which can mean swifter enforcement and less scope for a
party to delay matters.
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Herdell & Yost LLP
Rebecca Yost
1030 Main St # 215, St Helena, CA 707 967-1199
Jean Barstow
Jean Barstow
830 School St, Napa, CA 707 251-9021
Kayfetz Mc Intyre & Elliott
Linda Mc Intyre
816 Brown St, Napa, CA 707 255-2444
Saxon Leonard Law Firm
Saxon Leonard
1001 2nd St # 345, Napa, CA 707 257-5378 |
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However, some of the disadvantages of arbitration can be that:
the parties need to pay for the arbitrators, which adds an additional
layer of legal cost (however the online company mentioned above, net-XYZ.com,
virtually eliminates the cost factor with most cases being heard for
only $95)
although usually thought to be speedier, when there are multiple
arbitrators on the panel, juggling their schedules for hearing dates
in long cases can lead to delays (but again, with net.XYZ.com this is
not a problem since hearings take place in virtual-time instead of
real-time) in some legal systems, arbitral awards have fewer
enforcement remedies than judgments
arbitrators are generally unable to order interlocutory measures
against a party, making it easier for a party to take steps to avoid
enforcement of an award, such as the relocation of assets offshore
rule of applicable law is not binding, and arbitrators not subject to
overturn on appeal may be more likely to rule according to their
personal ideals (which could be a good thing as cases are decided on
merit rather than technicalities - net-XYZ.com employs equity-based
rulings)
Arbitrability
By their nature, the subject matter of some disputes are not capable
of arbitration. Matters relating to crimes, status and family law are
generally not considered to be arbitrable (net-XYZ.com will arbitrate
post-marital disputes arising out of unclear or ambiguous divorce and
separation decrees). However, most other disputes that involve private
rights between two parties can be resolved using arbitration. In some
disputes, parts of claims may be arbitrable and other parts not. For
example, in a dispute over patent infringement, a determination of
whether a patent has been infringed could be adjudicated upon by an
arbitration tribunal, but the validity of a patent could not (as
patents are subject to a system of public registration, an arbitral
panel would have no power to order the relevant body to rectify any
patent registration based upon its determination |
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