Arbitration is a form of ADR (Alternative Dispute Resolution) that is similar to court litigation.
In arbitration, the parties to a dispute refer the dispute to an impartial adjudicator, i.e., one or more persons (the “arbitrators” or “arbitral tribunal”), by whose decision (the “award”) they agree to be bound. The decision is legally binding and enforceable.
The parties grant authority to the arbitrators to adjudicate the dispute by an agreement, called an Arbitration Agreement. This is often a document signed by the parties after the dispute has arisen. Commercial contracts often include an arbitration clause, to the effect that any disputes arising in connection with the contract are to be decided by arbitration, and often that clause will name a predetermined arbitrator or arbitral institution under whose auspices the arbitration is to take place. Such clauses, if correctly drafted, are legally binding and enforceable by the courts.
With regards to effective procedure, however, arbitration has a pronounced advantage over the other forms of ADR. Mediators do not have the power of the courts to compel the parties to cooperate, whereas if parties have signed an arbitration agreement, they can be compelled to cooperate at the risk of a binding decision against them if they do not. Arbitrators (with the support of the courts) can grant protective orders, such as freezing orders (injunctions) designed to preserve money or assets for the purpose of enforcement, or alternatively, to locate and preserve evidence for the fair resolution of a dispute.
Furthermore, arbitration provides a final, binding resolution of the dispute. Regarding enforcement, national arbitration laws ensure that arbitral awards are enforceable by the courts, and there is very little scope for appeal (usually only procedural matters, such as the arbitration agreement or the due process of the actual proceedings, will be subject to appeal, and not the decisions of the arbitrators). This presents a distinct advantage for arbitration over even court proceedings.
Arbitration in Beis Din
A Din Torah is a hearing of a dispute in front of a recognised Beis Din (Jewish court), in accordance with Jewish law. Read more…
To view or download an Application for a Din Torah please click here.
To view a sample Deed of Submission to arbitration at the Federation Beis Din please click here.