Arbitration

In arbitration you and the other party appoint an independent third party to decide the outcome of your dispute

When should you use arbitration?

Arbitration is generally used when all parties agree to the process. Most commonly, it is used because there is an arbitration clause in a commercial or consumer contract. Arbitration is a formal process in which an impartial third party with specialist background knowledge on the nature of your dispute hears all parties and makes a binding decision to resolve it.

When is arbitration not suitable?

The formality of arbitration makes it less suitable for small or simple disputes than for large complex cases.

What's the difference?

The difference between arbitration and mediation

In mediation a neutral facilitator works with all parties to assist them to reach a solution. Arbitration is a formal process in which an independent third party hears from all parties and makes a decision about how to resolve the dispute.

The difference between arbitration and adjudication

The aim of adjudication is to resolve disputed issues in order to enable work to continue (either indefinitely or while awaiting the decision of a judge or arbitrator). Arbitration is a more formal process, and the arbitrator's decision is legally binding.

The difference between arbitration and evaluation

An evaluator's opinion aims to help you to decide how to handle your dispute and may enable you to reach a solution. The arbitration decision resolves the dispute.

How can a solicitor help?

Many people appoint a solicitor to advise and act for them during the formal arbitration process. A solicitor can ensure that you present your case to the arbitrator to the best advantage.

Find a Solicitor

The arbitrator may be a solicitor, who will have the benefit of both legal and arbitration training, and who is subject to the same regulation as all solicitors.

If your contract has an arbitration clause, it may also state who the arbitrator will be. If there is no arbitration clause or an arbitrator is not identified, you may be able to apply to the president of the Law Society to appoint one for you. You can download the guidance notes on appointing an arbitrator from the Law Society's website.

Is there any cost associated with arbitration?

Yes: you (or your solicitor, if you appoint one) should get confirmation from the arbitrator about how much the arbitration costs will be.

Is the arbitrator's decision final?

An arbitration decision is legally binding, and there are limited grounds for challenging it: you would have to prove to a court that the arbitrator was really unreasonable or biased.

Will arbitration affect a court claim?

You are very unlikely to be able to take your case to court once an arbitration decision has been taken.