arbitrations

Arbitration is a method of dispute resolution in which parties submit their claims to one or more arbitrators rather than to courts. It stems from an agreement to arbitrate, usually through a contract clause or a separate arbitration agreement. Arbitration can be domestic or international, institutional or ad hoc. In institutional arbitration, a recognized organization (for example ICC, LCIA, or AAA) administers the process and provides rules, while ad hoc arbitration uses minimal or bespoke procedures.

The process typically begins with a notice of arbitration and the filing of a statement of claim, followed by a response. The arbitrator or a panel is appointed, possibly with institutional support, and a hearing or written submissions may be held. The arbitrators render an arbitral award, which is binding on the parties and generally enforceable under national law and international instruments such as the New York Convention for cross-border disputes. The seat of arbitration determines the procedural law applied and can influence grounds for challenge or setting aside the award.

Confidentiality is commonly valued in arbitration, though it is not universal. Costs include arbitrators’ fees, administrative charges, and legal representation; these costs can be more predictable under institutional rules, but may also be high. Advantages of arbitration include procedural flexibility, expertise of arbitrators, faster timelines, and enforceability across borders. Disadvantages include limited grounds for court review, potential for higher costs if disputes are complex, and possible strategic behavior by repeat-player institutions or parties. Arbitration is widely used in commercial contracts and in investment disputes (investment arbitration), with specialized mechanisms for emergency relief and interim measures.