Define: Voluntary Arbitration

Voluntary arbitration is a process in which parties involved in a dispute agree to resolve their differences outside of court by submitting their case to an arbitrator or a panel of arbitrators. It is a voluntary alternative to litigation.

Unlike court litigation, voluntary arbitration is a private and confidential process. It allows parties to choose their arbitrator, set their own rules, and have more control over the proceedings. The decision made by the arbitrator is usually binding and enforceable.

Voluntary arbitration can be used to resolve a wide range of disputes, including commercial, employment, construction, and consumer disputes. It is particularly useful when parties want a quicker, more cost-effective, and less formal resolution than traditional court litigation.

In most cases, voluntary arbitration requires the consent of all parties involved. However, some contracts or agreements may include mandatory arbitration clauses, which means that parties are obligated to resolve their disputes through arbitration rather than going to court.

In voluntary arbitration, parties have the flexibility to choose their arbitrator. They can either agree on a specific arbitrator or use an arbitration organisation to appoint one. The selected arbitrator should be impartial, experienced, and knowledgeable in the relevant area of law.

During voluntary arbitration, both parties present their case, provide evidence, and make arguments before the arbitrator. The arbitrator then reviews the evidence, listens to the arguments, and makes a decision, known as an arbitral award. This decision is usually final and binding.

In general, the decision of an arbitrator in voluntary arbitration is final and binding, with limited grounds for appeal. However, parties can challenge an arbitrator’s decision in court if there is evidence of misconduct, bias, or a serious error in the arbitration process.

The duration of voluntary arbitration varies depending on the complexity of the dispute, the availability of parties and the arbitrator, and the agreed-upon timeline. It can range from a few weeks to several months, providing a faster resolution compared to court litigation.

Yes, voluntary arbitration is legally binding if both parties agree to be bound by the arbitrator’s decision. The arbitral award can be enforced in court, and parties are generally required to comply with the terms of the decision.

The cost of voluntary arbitration varies depending on factors such as the complexity of the dispute, the fees charged by the arbitrator, and any administrative costs. However, voluntary arbitration is often considered more cost-effective than court litigation, as it typically involves fewer procedural steps and less formalities.