Although international arbitration is hardly known by many people, a decade or so ago, only a handful of companies actually used arbitration as their exclusive method of dispute resolution. Today, hundreds of companies, representing a wide range of industries, are now availing the arbitration services offered by arbitration legal services companies. Though international arbitration has been gradually gaining momentum, some industries are still hesitant to avail of arbitration because of the perceived cost involved. However, it must be noted that arbitration costs are falling because of stiff competition in the market and also because of the need for fast decisions in some industries where time is really a premium. As a result, arbitration has become increasingly preferred by both small-scale companies and large corporations.
There are three distinct phases in the process of arbitration, and these are negotiation, conciliation, and arbitration itself. Although international arbitration is mostly focused on disputes arising out of contract enforcement, the concept of arbitration has also extended to non-contractual disputes like pollution and natural disasters. Thus, even if the disputes are not related to contract, they too have the potential to become part of international arbitration. Each phase of mediation requires specific qualities that must be present for them to succeed.
Negotiation: Before any meeting can take place, the parties must first agree on the terms of the arbitration agreement and, if applicable, the rules of the arbitration institution. This requires the concreteness of the parties to the document and the commitment of the parties to the decision-making process. The parties may agree to submit a written outline of the key points to be discussed, which is then collectively referred to as the “plan of procedure.” Once the outline is approved by all concerned, the parties then formally submit the plan to the courts, which makes its final decision based on the details included therein. The courts make use of the procedures contained in the arbitration agreement to reach its decision.
Reviewing and Appeal: Once the plan is approved by the court, it is reviewed by an arbitrator. The arbitrator’s job is to independently review the plan and render a decision based on the facts found. If the arbitrator finds that part or portions of the document do not meet the public interest, he or she can request that the document be stricken, which allows the parties to resubmit it with revised language in accordance with the original agreement. The courts generally allow agencies to resubmit a dispute settlement agreement to the state bar when requested by one of the parties involved, but it must first be submitted to the state bar.
Discovery: Discovery is used in order to get more detailed information about a party. For instance, if a party files a complaint against another person, the arbitration institution will require proof that the person committed the alleged act. This is considered the initial phase of discovery, and the parties can choose to submit only discovery necessary to meet their obligations under the dispute agreement, or they can agree to provide the other party with all of the discovery that is necessary.
Disputing Claims: As mentioned above, arbitration agreements generally outline specific arbitration institutions that may handle disputes. In some states, these associations are known as judicial tribunals, while in other states, they are known as county courts. If you are filing a personal injury claim, the arbitration agreement likely outlines a state-specific arbitration institution. To make matters more complicated, the United States House of Representatives has been debating whether it should include arbitration in the bill for federal office buildings.
Interim Measures: Similar to judicial interpretations, interim measures are temporary measures used to stop or prevent an action. For instance, a claim could be filed against another individual and the claim would be held in abeyance until the other individual takes action. An arbitration law might set a limit on the time period for filing such claims. The arbitration law could also require a mediation or arbitration hearing before making a decision. Many times, arbitration hearings are able to be completed very quickly, especially if both parties agree to submit written briefs and/or perform oral arguments.
Arbitration Agreements and Procedures: Although arbitration agreements and procedures vary greatly depending on the state, they typically include the same general components. One such component is an arbitration clause, which outlines the parties to the agreement and what must be done in case of disputes. Other components commonly found in arbitration agreements are disputes settlement and award provisions.