arbitation

Arbitation, commonly spelled arbitration, refers to a method of resolving disputes outside the court system by one or more arbitrators who render a binding decision. It is used for civil, commercial, labor, and international disputes, and it can be domestic or cross-border. In modern usage, arbitration is typically governed by a contract or agreement in which the parties consent to arbitrate future disputes and to be bound by the arbitrator's award.

Procedures vary, but most arbitration follows agreement to arbitrate, selection of one or more arbitrators, a hearing for presenting evidence and arguments, and the issuance of an arbitral award. The process can be conducted under institutional rules (for example ICC, LCIA, SIAC, AAA/ICDR) or ad hoc arrangements (often under UNCITRAL rules).

Key differences from litigation include confidentiality, greater procedural flexibility, the ability to appoint arbitrators with specialized expertise, and generally faster resolution. However, arbitration can be costly, and the avenues for appeal are limited by the parties' agreement and applicable law; some awards may be subject to court review for nullity or corruption, and enforcement can require domestic or international support.

International arbitration is aided by treaties and instruments such as the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958), which facilitates enforcement in many countries. Arbitration success hinges on enforceability of the award and the neutrality and impartiality of the arbitrators.

See also: New York Convention, UNCITRAL Rules, ICC Arbitration, SIAC, LCIA.