In the realm of alternative dispute resolution (ADR), arbitration has emerged as a popular and effective method for resolving conflicts outside of the traditional court system. It offers parties a more streamlined and private process while providing a binding decision. It is essential to understand the process and timeline involved in resolving an arbitration dispute for the best outcome. Here we aim to shed light on the key aspects of arbitration. We also talk about the steps that typically occur during the resolution process.
About arbitration
Arbitration is a voluntary process in which the parties involved agree to submit their dispute. They submit this to an impartial third party, known as an arbitrator or an arbitration panel. Unlike court litigation, arbitration allows the parties to have more control over the proceedings. This includes the selection of the arbitrator, the rules of evidence, and the timing of the hearings. This flexibility makes arbitration an attractive option for businesses. It also appeals to international disputes, family disputes, and other complex matters.
The process
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Initiating the Arbitration:
The arbitration process commences with the initiation of the arbitration. This occurs when one party submits a demand for arbitration to the other party, indicating their intention to resolve the dispute through arbitration. The demand typically outlines the nature of the dispute, the relief sought, and the relevant contractual provisions requiring arbitration.
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Selection of the Arbitrator(s):
Once the arbitration is initiated, the parties must agree on the selection of the arbitrator(s). This can be done in various ways, such as appointing a single arbitrator or forming a panel of multiple arbitrators. The parties may have agreed upon a specific method for selecting arbitrators in their contract, or they may need to follow the rules of an arbitration institution. The chosen arbitrator(s) must be impartial and have expertise in the subject matter of the dispute. This ensures the outcome will be well-considered and fair.
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Preliminary Proceedings and Hearings:
After the arbitrator(s) are appointed, preliminary proceedings and hearings are scheduled. These may include the exchange of documents, statements of claim and defense, witness statements, and expert reports. The purpose of these preliminary proceedings is to allow the parties to present their cases and gather the necessary evidence to support their arguments. The arbitrator(s) may also hold pre-hearing conferences to clarify procedural matters, address discovery disputes, and set the schedule for the arbitration process.
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The Main Hearing:
Once the preliminary proceedings are complete, the main hearing takes place. This is where the parties present their evidence, examine witnesses, and make their arguments before the arbitrator(s). The hearing is typically less formal than a court trial but still follows certain rules of procedure. The parties have the opportunity to present their case and rebut the opposing party’s arguments. The arbitrator(s) may ask questions to clarify issues and gather further information.
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Post-Hearing Submissions:
Following the main hearing, the parties may be given an opportunity to submit post-hearing briefs or written arguments. These submissions allow the parties to summarize their positions. It also provides a chance to respond to any points raised during the hearing and emphasize their legal and factual arguments. Post-hearing submissions assist the arbitrator(s) in reaching a well-informed decision.
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Arbitration Award:
Once the arbitrator(s) have considered all the evidence and arguments presented, they will issue an arbitration award. The award is a binding decision that resolves the dispute. It sets out the findings of fact, the legal reasoning behind the decision, and any remedies or damages awarded. The award may also include provisions regarding the allocation of arbitration costs, attorney’s fees, and interest.
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Enforcement of the Award:
After the arbitration award is issued, the winning party may need to take steps to enforce the decision. In most jurisdictions, an arbitration award can be enforced in the same manner as a court judgment. The winning party must file a motion with the appropriate court to confirm the award and obtain a judgment. Once the judgment is obtained, the winning party can take steps to collect the awarded damages or enforce other remedies.
How long will it take?
In terms of timeline, the length of an arbitration process can vary depending on the complexity of the dispute and the parties’ cooperation. Some arbitrations can be resolved in a matter of weeks. Others may take months or even years. The initial stages, such as the appointment of arbitrators and preliminary proceedings, may take several weeks or months. The main hearing can take one or more days, depending on the number of witnesses and the complexity of the evidence presented. Following the hearing, the arbitrator(s) typically have 30 to 60 days to issue the award.
Should I consider arbitration?
One distinct advantage of arbitration is that it can often be resolved more quickly than court litigation, which can drag on for years. Additionally, arbitration can be less expensive than court litigation, as the parties can avoid some of the procedural costs associated with the court system, such as discovery and motions practice. However, the cost of arbitration can vary depending on the arbitration institution’s fees, the number of arbitrators selected, and the expenses associated with preparing for and attending the hearing.
To learn more about the procedure and how it can work for you in family disputes and other matters, contact our office at 604-371-0198 and ask to set up an appointment with our mediation/arbitration specialists. For details on our other counseling services, call the same number or fill out the contact form on our website.