The process of initiating arbitration services begins when one of the parties, such as an investor, submits a statement of claim and other documents to FINRA. This statement should include a description of the dispute, the parties involved, and the amount of money requested. It is important to provide all the documents mentioned in the statement that support the claim. Arbitration is a procedure in which a dispute is presented, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute.
By choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court. The pros and cons of the arbitration process, as an alternative to filing a lawsuit, should be considered. This includes data on the potential cost of arbitration and the relative simplicity of the procedure. If they choose to have a three-member arbitral tribunal, each party appoints one of the arbitrators; those two people then agree on who will be the presiding arbitrator. Professional arbitrators sometimes develop their own rules and procedures, although these can vary greatly depending on the service. Arbitrations usually arise from contractual clauses that require parties to arbitrate their disputes rather than sue.
The arbitration process generally begins when the complaining party notifies the other party of its intention to arbitrate a dispute. Alternatively, the Center may suggest potential arbitrators with relevant experience or directly appoint the members of the arbitral tribunal. When the advances have been paid and the arbitral tribunal has been constituted, the SCC will refer the case to the arbitral tribunal for further proceedings. If you are involved in an arbitration case, you can request mediation at any time before the arbitrators issue an award. The function of the Arbitral Tribunal is to conduct the arbitration in any way it deems appropriate.
The Arbitral Tribunal shall consult immediately after the referral with the parties in order to establish a tentative timetable for the conclusion of the arbitration. For anyone faced with the possibility of arbitrating a dispute, it's important to know how arbitration works and what to expect during the process. In this section, you'll find resources and links to information about using arbitration to resolve your legal problems and what to expect at an arbitration hearing.