Arbitration is a dispute resolution mechanism, often chosen for its efficiency and flexibility compared to traditional court proceedings. Typically, the ability to initiate arbitration proceedings depends on a prior agreement between parties that contains an arbitration clause. This means that if a dispute arises covered by the clause, either party can initiate the arbitration process. It's crucial, however, to be well-informed about the intricacies and implications of such proceedings. Settlement agreement solicitors play a pivotal role in these situations, advising clients on the best strategies, ensuring that their rights are protected, and guiding them through each step of the arbitration process.
The plaintiff is the one who initiates an arbitration by filing a statement of claim that outlines the pertinent facts and the remedies sought. The defendant responds to the arbitration demand by submitting an answer that details the relevant facts and the defenses available for the statement of claim. Arbitrations and mediations for commercial and securities disputes can be initiated through FINRA, which are two different ways of resolving disputes between investors, brokerage firms, and individual brokers. The SCC Arbitration Institute provides a Cost Calculator Model Clauses Statistics Step-By-Step Guide to SCC Express Arbitration. Companies based outside Sweden do not pay Value Added Tax (VAT) on SCC registration fees.
After receiving the request for arbitration, the SCC performs a preliminary authentication and confirms receipt to the complainant. As soon as the registration fee is paid, the respondent will be notified of the request for arbitration. In connection with the confirmation of receipt of the request for arbitration, the SCC may, if appropriate, request further details from the complainant. Based on the parties' submissions, the SCC calculates the advance of the costs paid by both parties in equal parts, unless otherwise stated in the arbitration agreement. The registration fee is deducted from the claimant's portion of the advance payments.
If one party fails to make the required payment, the SCC will give the other party an opportunity to do so. If the required payment is not made, then the SCC will dismiss the case in whole or in part. When applying either the Expedited Rules or Arbitration Rules, parties have an opportunity to jointly appoint an arbitrator. If they cannot agree, then it is up to the SCC to make an appointment. In applying SCC Rules, it is up to SCC to appoint a president of arbitral tribunal. After both parties have paid their advances and arbitral tribunal has been constituted, then SCC will refer case to arbitral tribunal to continue with procedure.
When applying SCC Rules, final award should be made no later than 6 months after date on which case was referred to Arbitral Tribunal. When applying Expedited Rules, final award should be made no later than 3 months after date case was referred to Arbitrator. In all cases, Arbitral Tribunal will conduct arbitration in an impartial, practical and expeditious manner, giving each party an equal and reasonable opportunity to present their case. At any time before closing of proceedings, one of parties may modify or complete their claim, counterclaim, defense or compensation provided that their case is still covered by arbitration agreement and unless Arbitral Tribunal considers it inappropriate taking into account delay in its submission, harm to other party or any other circumstance. If one of parties fails to appear at hearing without demonstrating justifiable cause then Arbitral Tribunal may continue with arbitration and make award. The function of Arbitral Tribunal is to conduct arbitration in any manner it deems appropriate. Arbitration can be conducted ad hoc (internally by parties) or with support of organization such as American Arbitration Association (AAA).
Many retailers, credit card companies and employers use mandatory arbitration in their contracts requiring customers or employees to consent to arbitration rather than litigation to resolve disputes. Costs vary depending on complexity and details of case and level of experience you want from arbitrator. If you are involved in an arbitration case then you can request mediation at any time before arbitrators issue award.