Arbitration

Arbitration refers to a process whereby two or more parties, generally by agreement, have a dispute heard and determined by one or more private individuals, and generally those individuals are of their own choosing.

It is usual for parties to be legally represented at commercial arbitrations.

The arbitration agreement may detail procedural aspects of the arbitration. Usually, however, the arbitrator has full discretion as to how the arbitration is to proceed subject to agreed limitations. Depending on whether the arbitration is domestic or international, the Commercial Arbitration Act 2010 (NSW) or the International Arbitration Act 1974 (Cth) set out certain matters relevant to the rights and obligations of the parties to a commercial arbitration and of the arbitral tribunal, as well as to the circumstances and scope of any court involvement.

The process for the arbitration would usually consist of:

• • one or more preliminary conferences to agree procedure and define the dispute;
• • provision of evidence, generally by way of statements;
• • a form of hearing either on the papers or with oral evidence; and
• • written determination of the dispute (with reasons) by the arbitrator (an “award”)

A court can be approached for recognition and enforcement of arbitration awards.

See Arbitration.