Arbitration

Meaning:

This is one of the dispute resolution processes being practiced, and it similar to a lawsuit.  In this process,there is a neutral decision maker, popularly known as an arbitrator. He is either selected by the concerned parties or by a neutral ADR service provider. Sometimes ,arbitration process is carried on with a panel of three arbitrators in order to ensure different and more effective solutions. Parties in arbitration are usually represented by their attorneys, who provide the necessary evidence and legal arguments to the arbitrator, representing their clients. The arbitrator then arrives at a decision, which is termed as an "award." An arbitration award generally is a final decision, subject only to limited review by a court as allowed by law. The use of arbitration can be prevalently observed in consumer and employment matters, where it may be authorized by the terms of employment or commercial contracts.

Advantages:

Parties often seek to resolve their disputes by means of arbitration,owing to  a number of perceived potential advantages over judicial proceedings:

• When the subject matter of the dispute involves a lot of technicality, arbitrators with a great deal of expertise can be appointed
• It is a faster process when compared to litigation which consumes a lot of time
• It is a cost effective process
• It is a very flexible process and can be adjusted to the needs of the parties
• Arbitral proceedings and arbitral awards are usually maintained confidentially, thereby providing a sense of security
• As a result of the provisions of the NEW York Convention, 1958 arbitration awards are easier to enforce in most of the nations.
• In most of the legal systems that prevail, the avenues available for appeal of an arbitral award are very limited which is very advantageous to the concerned parties.

Arbitrability:

The nature of the subject matter of some disputes, decides whether an issue is capable of     arbitration. Usually, two groups of legal procedures cannot be subjected to arbitration:

• Procedures which are more likely to result in a determination wherein the parties to the dispute may not enter into an agreement
• A few legal orders are exempted or they curtail the possibility of arbitration for reasons on grounds of protection of weaker members of the public, e.g. consumers. 

Questions:

• Why does the court offer Arbitration
• How does one have an Arbitrator appointed?