Alternative Dispute Resolution

The advantages of these alternative forms of dispute resolution (provided they have been agreed by both parties, either before or after a dispute arises) include the following:

• decisions in arbitration or binding opinion proceedings are generally reached more quickly than in court proceedings;
• parties can choose an arbitrator or binding adviser with specific expertise in the area relevant to the dispute;
• arbitration and binding opinion proceedings are not public, unlike court proceedings;
• arbitral awards are generally easier to enforce internationally (on the basis of the New York Convention, to which many countries are party) than court judgments.

Another key difference between arbitration and opinion on the one hand, and court proceedings on the other, is that, unless parties agree otherwise, there is in principle no right of appeal.

A further important distinction, particularly in arbitration, is that the unsuccessful party is typically ordered to pay the full legal costs. In court proceedings, by contrast, cost awards are usually based on fixed scales, meaning that only part of the actual legal costs is recovered.