Reflections on Arbitration Proceedings: A Chance for Dispute Resolution Missed Forever?

Abstract

Arbitration practice has been evolving over time, in line with the historical and socio-political backdrop (the latter being an important aspect of commerce and trade in many legal systems), up to a point at which it is common practice for contractual parties to “promise” each other that such disputes as may arise from their business relationship will not be resolved in court proceedings, but be brought before a special body – a permanent arbitration court or an ad hoc arbitrator. Th e institution of arbitration proceedings – as a part of a larger dispute resolution system and an alternative to judicial proceedings in general courts – confronts potential participants in arbitration with a dilemma: which of the dispute resolutions methods on off er should they use?

It is not easy to resolve the above-described dilemma of having to choose in favour of one method of dispute resolution or the other, nor is it easy to come to a final conclusion as to what direction should generally be taken by parties for resolving their disputes, as to what form of dispute resolution could be recommended as “more ideal” – that is, whether to take, at those metaphorical crossroads, the classic (and in some ways safer) route of court proceedings or to venture down a new “turning in the road” and take the risk of experimental alternative dispute resolution.

Keywords: Arbitration proceedings, arbitrator, independence, impartiality of arbitrators

JEL Classification: J52