Understanding Arbitration and Alternative Dispute Resolution
Understanding Arbitration What is Arbitration? Arbitration is a process where the parties appoint an independent third-party to act as a Judge and determine the dispute. The decision of the Arbitrator is binding on the parties. The parties cannot refer the matter to the court appealing against the Arbitrator’s decision unless he has reached that decision having made a manifest error of fact or law. Arbitration is widely used in commercial disputes, especially in sectors such as construction, shipping, energy, and international trade. It is often preferred for its neutrality, especially in cross-border contracts, where parties can mutually agree on the arbitration rules, language, and even the seat (location) of arbitration. In the UK, arbitration is now governed by the Arbitration Act 2025, which introduces several key reforms: Key Reforms under AA 2025 (a) Extended Immunity for Arbitrators The 2025 Act enhances protections for arbitrators by expanding their immu...
