Q & A
Q: Who serves as an arbitrator to resolve a dispute?
A: An arbitrator is an independent expert, often a former judge or attorney, who is selected either by the parties to the dispute or a designated arbitration administrator to resolve the conflict. The arbitrator takes the place of a judge and jury and listens to the facts presented by the parties, applies the relevant law, and makes an award.
Q: What is an arbitration award?
A: An arbitration award is a decision of the arbitrator finding for and/or against a party and is made in writing.
Q: Are arbitration awards legally enforceable?
A: Arbitration awards are, with rare exception, legally enforceable in the court of the state or country having jurisdiction over the dispute.
Q: Can I arbitrate a current dispute when there is no contractual arbitration clause?
A: Yes, arbitration of a current dispute may be accomplished by having all parties to the dispute sign an Agreement to Arbitrate. It is recommended that you consult an attorney in your jurisdiction when you first have knowledge that you may have a claim requiring resolution or when you first receive a demand for arbitration so that you may properly respond.
Q: Do I need to hire an attorney to represent me during an arbitration?
A: In the UAE, there is no requirement that either corporations or individuals be represented by an attorney at an arbitration. There are, however, certain requirements regarding the timing and content of arbitration demands and responses. There are statutes of limitations that may prohibit you from filing for arbitration on a claim after the passing of a certain amount of time, just like they would prohibit the filing of a lawsuit. Similarly, there are time requirements for filing a response to a demand for arbitration that must be met. It is recommended that you consult an attorney when you first have knowledge that you may have a claim requiring resolution or when you first receive a demand for arbitration so that you may properly and timely respond.
Q: What are the advantages of using arbitration?
A: Arbitration is more flexible than adjudication. The rules of evidence are less strict, making it easier to get to the truth. Additionally, the disputants can usually choose their own arbitrator, who can be an expert in the topic in dispute, which a judge seldom is. This makes arbitration especially valuable in complex, technical commercial disputes.
With arbitration results are achieved on a much shorter timeline, especially since the decision is binding and not open to appeal as litigation is. Thus costs are typically much lower compared to litigation.
Arbitration proceedings are private, which protects organizations from disclosure of trade secrets or potentially embarrassing information.
Q: How does arbitration differ from mediation?
A: Mediation is a non-binding process where parties utilize a neutral third party to help them negotiate a settlement.
Arbitration produces a binding legal decision that finally resolves the parties’ dispute, much like a decision in court