The Role of Courts in Arbitration Proceedings

Arbitration is a process in which two or more parties agree to resolve a dispute outside of court. This process is governed by the Arbitration and Conciliation Act, which requires any judicial authority to submit the parties to arbitration with respect to an action brought before it. By choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court. The role of the court in an arbitration proceeding is limited. Once the arbitral award has been approved, the aggrieved party may request such prior award from the other party.

However, regardless of how eminent the arbitrators are, an arbitration award does not bind any other arbitrator or any relationship between the contracting parties. Australian courts now grant recognition to international arbitration agreements and awards, which should inspire confidence in those dealing with maritime and Admiralty matters and other international merchants when it comes to providing local headquarters for their arbitrations in their contracts. Generally, as enforced by federal, state, and territorial arbitration laws, courts can be expected to require the parties to their agreements to arbitrate their disputes. In an arbitration proceeding, each party appoints one of the arbitrators; those two people then agree on who will be the presiding arbitrator. Alternatively, the Center may suggest potential arbitrators with relevant experience or directly appoint the members of the arbitral tribunal. Article 34 of the Arbitration and Conciliation Act deals with the annulment of a domestic award resulting from international commercial arbitration. This article states that the request for annulment of the arbitral award must be submitted within 30 days, starting from the day the applicant receives the award. The difference between court and arbitration is that the court deals with litigation, while arbitration means resolving disputes between parties outside of court.

If Member States of the European Community cannot offer an arbitration venue capable of issuing orders that prevent the parties from acting in breach of the arbitration agreement, there are other states that do.

Nicole Fratercangelo
Nicole Fratercangelo

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