Should You Go to Arbitration? Examining the Benefits and Drawbacks for Dispute Resolution

Many companies, partnerships, and investment deals don't plan for potential future legal disputes. However, in case any disagreement does occur, there are several ways to settle it. One of the preferable ways is arbitration.

Arbitration is a process of presenting a dispute to a neutral third party, known as the arbitrator. After hearing both sides' presentations, this arbitrator helps to encourage resolution. These presentations can be limited to the documents that have been provided, or they can more frequently include oral arguments in person, often made by the attorneys on each side. Sometimes, in order to give the arbitration process more energy, the presentation will go on to include witness testimony.


Efficient and Flexible: Usually, a dispute will be settled considerably sooner. Resolving dispute in courts may take several years. But if choose arbitration, procedure can be completed much faster. Trials must also be arranged into the court timetables, which are typically overflowing with hundreds or even thousands of cases to choose from. On the other hand, it is easy to arrange arbitration sessions according to the parties' and the arbiter's availability.

Confidentiality: Arbitration involves private practices. This ensures the confidentiality of the information about the dispute and its resolution. This aspect may be attractive to renowned public figures or business clients engaged in disputes. The whole case—evidence, assertions, and arguments—is covered by the unbreakable secrecy guarantee.

Impartiality: Since the arbitrator usually gets selected jointly by the disputing parties, both parties may be sure that the person will be neutral and unbiased.

Party Autonomy: Arbitration gives parties the flexibility to customize the dispute resolution process to meet their unique needs. Parties have significant control over how their disputes are resolved, from deciding on the language of the proceedings to picking arbitrators based on their qualifications in the appropriate subject.


Can be more expensive: In many cases, arbitration may end up costing more than going to court. Reputable arbitrators have the right to demand high fees that are not covered by court. Particularly in complicated disputes, the expenses of administrative procedures, counsel, and arbitration fees may rapidly go up.

Unpredictability: Unlike courtroom trials, arbitration is not always conducted under the official standards of evidence and process. Rules of evidence may restrict the evidence that a jury or judge may consider, although arbitrators are exempt from this restriction.

Enforceability of Awards: Although arbitral laws are usually enforced efficiently in Dubai, there may still be difficulties, particularly if one of the parties refuses to abide by the ruling. The procedure of enforcement may become more difficult if it includes going through international treaties and conventions.

Lack of Precedent: Unlike court judgments, rulings in arbitration proceedings do not possess the power to establish enduring legal principles applicable to future cases.

Arbitration offers a range of advantages, however, potential drawbacks should be carefully considered when choosing this dispute resolution method. Parties should ultimately consider these aspects in the context of the particulars of their dispute and their preferred methods of settlement.

Alqada believes in supporting clients on each step during the arbitration process. There are following list of Arbitration's articels you can know more about Arbitration law by visiting these links.

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