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Obligations of Arbitration.

Posted on 20/06/2016 · Posted in Arbitration

Arbitration is an alternative form of dispute resolution to litigation, a formal and binding process where a final judgement is made by an independent arbitrator. Arbitration is often chosen over litigation as a faster, more flexible and cost effective route to resolving disputes both within the UK and internationally.

While arbitration is becoming an increasingly popular way of resolving disputes in today’s modern arena, it is worth remembering that arbitration in fact dates as far back as Aristotle and Ancient Greece, whose ethics still influence modern day thinking.

Equity is justice in that it goes beyond the written law. And it is equitable to prefer arbitration to the law court, for the arbitrator keeps equity in view, whereas the judge looks only to the law, and the reason why arbitrators were appointed was that equity might prevail”

As arbitration becomes more and more an integral part of the judicial system, the right ethical conduct is more important than ever in ensuring a fair and effective outcome, and is the responsibility of everyone involved in the arbitration process, from the arbitrator to legal representatives to the disputing parties themselves. By adhering to a set of obligations or ethics, the interests of all participants are safeguarded, and both the arbitration process and outcome are more likely to remain time and cost effective, confidential and fair.

But what are these obligations? As such a key player in the arbitration proceedings, it is crucial that an arbitrator must be entirely impartial, fair and trustworthy. Arbitrators are bound by confidentiality which is a key component of any arbitration proceedings. But it is not just the arbitrator who must understand and adhere to certain obligations, but the disputing parties too. All participants must understand what obligations they and the other party will be under, including those of confidentiality, document disclosure or process agreements.

This is reflected by the general position under English law that the parties involved in arbitration, including the arbitrator and the tribunal, have a duty to maintain confidentiality throughout the arbitration, even without this duty being explicitly agreed. To this end, Article 30 of the London Court of International Arbitration (LCIA) Rules 2014 contains express provisions imposing obligations of confidentiality.

These obligations and ethics set a crucial standard that help arbitration continue to be one of the most popular forms of modern day dispute resolution.

Expert Evidence is a professional firm concentrating on the four main areas of dispute resolution; acting as expert witnesses in financial litigation, mediation, arbitration and adjudication. The firm has a civil, criminal and international practice and has advised in many recent cases. Areas of specialisation include banking, lending, regulation, investment, and tax.

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Disclaimer – Please confirm any of the above views with your solicitor. Expert Evidence takes no responsibility or provides any guarantee that the views above are correct for your particular case or jurisdiction.