In
general terms the process of arbitration
is an in-depth forensic investigation
of a dispute. It is every bit as thorough
as litigation. The 1996 Arbitration
Act governs the procedures of arbitration.
Arbitration
can take a long time and suffer all
the expenses of a court case. But that
is not always true.
The
key is in the hands of the arbitrator.
The arbitrator can “tailor-make”
the procedure. He can make it fit to
the particular dispute. For example
certain issues can be dealt with via
documents only. Alternatively he can
jettison the adversarial process of
litigation and conduct an investigative
regime whereby the arbitrator takes
the initiative in establishing the facts
and the law.
One
of the benefits of arbitration is that
the parties of the dispute may select
an arbitrator that is technically qualified
in the nature of the dispute such as
a surveyor, architect, engineer, pharmacist
or a lawyer The benefits of a technical
arbitrator is that he may use his professional
knowledge to root out the requisite
evidence.
The
arbitrator’s job is to decide
disputed fact and decide disputed law
then apply the decided fact to decided
law. Unlike adjudication the arbitrator’s
decision is fully binding and can only
be reviewed on an appeal to the courts.
Many
construction contracts contain an arbitration
clause. Such a clause generally navigates
the parties down the dispute route of
arbitration unless both of the parties
agree to litigate or mediate on the
matter in hand. If one party objects
to litigation then it is available to
the objecting party to make an application
to the courts for a stay in favour of
arbitration.
Of
course this does not prevent the parties
in dispute referring the matter in hand
to adjudication at any time before or
during the arbitration.
Prior
to commencing and/or defending an arbitration
it is prudent to legally and technically
appraise the case on its strengths and
weaknesses and identify the supporting
evidence analysing the risks both financial
and non-financially – and compiling
a strategy open to the client.