What is Arbitrament and How Does It Work?
Arbitrament is a legal term that refers to the process of resolving a dispute by an arbitrator, who is a neutral third-party appointed by the parties or by a court. Arbitrament is also known as arbitration, and it is one of the alternative dispute resolution (ADR) methods that can help parties avoid litigation and save time and money.
In this article, we will explain what arbitrament is, how it works, what are its advantages and disadvantages, and how to prepare for an arbitrament proceeding.
What is Arbitrament?
Arbitrament is a voluntary or mandatory process of settling a dispute by an arbitrator, who is a person with expertise in the subject matter of the dispute or in the law applicable to the case. The arbitrator acts as a judge and makes a binding decision based on the evidence and arguments presented by the parties.
Arbitrament can be used to resolve various types of disputes, such as commercial, consumer, employment, family, or international disputes. Arbitrament can be initiated by the parties themselves, by a contract clause that requires arbitration in case of a future dispute, or by a court order that refers the parties to arbitration.
How Does Arbitrament Work?
The arbitrament process typically involves the following steps:
- The parties agree on the arbitrator or the method of selecting the arbitrator. If they cannot agree, a court or an arbitration institution can appoint the arbitrator.
- The parties submit their statements of claim and defense, along with any supporting documents and evidence, to the arbitrator.
- The arbitrator sets the date, time, and place of the arbitrament hearing, and notifies the parties.
- The parties attend the arbitrament hearing, where they present their oral arguments and witnesses, and answer questions from the arbitrator.
- The arbitrator deliberates and issues an arbitrament award, which is a written document that states the outcome of the dispute and the reasons for the decision.
- The parties comply with the arbitrament award, which is final and binding on them. If one party fails to comply, the other party can enforce the award in court.
What are the Advantages and Disadvantages of Arbitrament?
Arbitrament has some advantages and disadvantages compared to litigation or other ADR methods. Some of them are:
- Arbitrament can be faster and cheaper than litigation, as it avoids lengthy court procedures and fees.
- Arbitrament can be more flexible and convenient than litigation, as it allows the parties to choose the arbitrator, the rules of procedure, the language, and the location of the hearing.
- Arbitrament can be more confidential than litigation, as it does not involve public records or media coverage.
- Arbitrament can be more impartial and expert than litigation, as it avoids potential bias or incompetence of judges or juries.
- Arbitrament can be less predictable and consistent than litigation, as it does not follow precedents or statutes.
- Arbitrament can be less transparent and accountable than litigation, as it does not provide reasons for the decision or allow appeals or reviews.
- Arbitrament can be less participatory and democratic than litigation, as it does not involve jury trials or public hearings.
- Arbitrament can be less fair and equitable than litigation, as it may favor more powerful or wealthy parties who can influence the selection or conduct of the arbitrator.
How to Prepare for an Arbitrament Proceeding?
If you are involved in an arbitrament proceeding, you should prepare yourself by following these tips:
- Read and understand your arbitration agreement or clause, which defines the scope, rules, and procedures of your arbitration.
- Hire a lawyer who has experience in arbitration and who can advise you on your rights and obligations.
- Gather all relevant documents and evidence that support your position and refute your opponent’s position.
- Prepare your statement of claim