In the business world, or any for that matter, most often than not, people would find themselves in a bind and disagreement between two or more parties. When this happens, of course, it can sometimes reach the need of going to court. However, because of the lengthy time that it can take for a case to finish in court, people would often opt for the ADR method, known as Alternative Dispute Resolution.
Under ADR there are many concepts, but for this article, we will give a brief introduction to Expedited Arbitration. Arbitration is a well-established worldwide method of settling disputes outside the legal system. It is generally the favoured form of conflict settlement in international business interactions since it is quicker than a judicial case.
What is it?
An agreement between the parties is required for arbitration (arbitration agreement). The parties must agree that the dispute will be resolved by arbitration under the agency’s Rules for Expedited Arbitration in order for them to oversee an expedited arbitration procedure.
In most cases, the parties incorporate such a clause in their business contract (arbitration clause). However, when a disagreement has emerged, the parties might agree to settle it through arbitration. The agency will be unable to manage the dispute in accordance with the accelerated procedure in the absence of such an agreement between the parties.
The parties may present a limited amount of applications in accordance with the Rules for Expedited Arbitration, and the expedited procedure has shorter deadlines than the Arbitration Rules method. As a result, the accelerated method is best suited to conflicts of a more uncomplicated kind.
Arbitration is a one-time procedure, and as a result, an arbitration ruling cannot be appealed. The arbitration method, on the other hand, is governed by legislation. The statute lays forth how an arbitration proceeding must be conducted in order to achieve the legal certainty standards. On a party’s request, a public court examines whether an arbitration proceeding meets the legal certainty standards.
How and When to Designate
The choice to expedite may be included into an ADR clause with or without additional gating factors, such as the magnitude of the dispute, so that the parties are aware of the tradeoff calculation ahead of time. In a contract with reasonably expected issues that aren’t suitable, stipulating accelerated processes is dangerous. In that case, the parties might stipulate in the ADR clause that they would meet and consult to assess if expediting is appropriate in the event of a disagreement.
In addition, even if the clause does not contain a trigger, the parties can choose accelerated processes by revising the ADR clause or entering into a submission agreement before or after beginning arbitration proceedings. Customizing certain characteristics, such as those discussed in this article, to a known disagreement aids in the creation of a very workable procedure. Following the bench trial with the tribunal, the customization might take the form of a revised ADR clause, submission consensus, or initial management order.