For those seeking an alternative to traditional litigation, arbitration has become an increasingly popular option. This method of dispute resolution involves appointing a neutral third party, known as an arbitrator, who will hear evidence and arguments from both sides before making a binding decision. Understanding key terms in arbitration laws are necessary for anyone involved in this process. Explore here essential terms that individuals working with arbitration law firms in Dubai should be familiar with:
Arbitration agreement:
An arbitration agreement is a foundational document that outlines the terms under which disputes will be resolved through arbitration. This agreement is typically a clause within a contract or a separate document where parties consent to submit their disputes to arbitration rather than litigation. The agreement specifies the scope of disputes covered, the rules governing the arbitration, and the process for selecting arbitrators. It is essential for ensuring that all parties are committed to arbitration and understand the framework for resolving their issues.
Arbitrator:
An arbitrator is an impartial third party appointed to resolve disputes in arbitration. Unlike judges in a court case, arbitrators are selected by the parties involved or through an arbitration institution. Arbitrators are expected to be neutral and knowledgeable about the subject matter of the dispute. Their role is to review evidence, hear arguments, and make a binding decision on the matter.
Arbitration award:
The arbitration award is the final decision rendered by the arbitrator or arbitration panel. It is the resolution of the dispute and outlines the findings, conclusions, and any orders or remedies granted. The award is legally binding on the parties and is enforceable in court if necessary. Knowing what constitutes an arbitration award and the criteria for its enforceability helps parties understand the outcome and its implications.
Discovery:
Discovery in arbitration refers to the process of exchanging information and evidence between parties before the arbitration hearing. This process allows parties to obtain relevant documents, witness statements, and other evidence to support their case. The extent of discovery in arbitration can be more limited than in litigation, which can affect how thoroughly each side can prepare for the arbitration.
Rules of procedure:
Rules of procedure govern how arbitration is conducted. These rules can be established by an arbitration institution, agreed upon by the parties, or specified in the arbitration agreement. They cover various aspects of the process, including filing claims, presenting evidence, and conducting hearings. Familiarity with the rules of procedure ensures that parties adhere to the correct process and understand their rights and obligations.