Arbitration is an alternative method to settle disputes outside of the court and in contrast to other alternative methods, it is compulsory by the parties. Often arbitration is imposed by memberships in organizations that alternative dispute resolution are a must part of any contract that the organization enters into contracts or agreements. Arbitration differs from Mediation in that the sides can accept or refuse to accept the mediator's decisions which in fact are kind of recommendations.
Arbitration in contrast to Mediation is like a court verdict and unless otherwise agreed, the arbitrator's decisions cannot be appealed.
The Arbitrator acts like a judge in the judiciary system but he has the right to deviate from the letter of the law if that is agreed upon prior to the arbitration process. It is also subject to the side's agreement if the arbitrator has to reason or explain his decisions, and as mentioned above, if the decisions are or are not subject to appeal.
Until 2008 the arbitrator did not have to explain his decisions, and thus, it was impossible to appeal the arbitrator's decisions because there were no legal grounds for an appeal.
Since 2008 the arbitrator has had to explain his decisions unless it is agreed that there are no requirements to do so. An option to appeal is also subject to an agreement between the parties. In addition, in rare cases, the arbitrator's decisions may be appealed in the regular court, for example, if the arbitrator acted beyond the scope of his mandate or that his decisions violate the common public order.
There are clear advantages to try to settle disputes via the alternative dispute resolution method; it is shorter than the regular court method and therefore is also less costly since it is not conducted in a courthouse, it is not open to the public, and thus assured confidentiality And the process is not as rigid as a regular court session which is subject to endless rules and procedures.
At the end of the Arbitration process, it is optional, not mandatory, to file the decisions at the court so the decisions gain the status of a court verdict.
Your attention The information on this page does not constitute advice of any kind or recommendation to take a procedure or not take a procedure. Anyone who relies on the information does so at his own risk. The correctness of the information may change from time to time.