How does arbitration work?

isnottheword

If there's an arbitration clause in a contract, is the arbitrator selected by the parties by mutual agreement or appointed by the courts service? Can an arbitrators decision be appealed and if so, in what court?
Is the format similar to a regular court format? i.e. can witnesses be called to give evidence? Does the expense of the arbitrator need to be incorporated into the overall consideration of costs?

Are there any limits in terms of what an arbitrator can deal with in the same way as there can be with certain types of cases in the circuit and high courts for some types of cases?

gimli2112

not a legal person but my layman's understanding is
- the arbitrator is agreed by mutual consent,
- you can appeal but in limited circumstances ie. show bias on the part of the arbitrator,
-appeals would probably be to the HC,
-witnesses can be called,
- the arbitrators costs form part of the process and would have to be met by the parties,
- think once the parties agree to the arbitration it has the same effect as if it was the HC

Really Interested

isnottheword wrote: »

If there's an arbitration clause in a contract, is the arbitrator selected by the parties by mutual agreement or appointed by the courts service? Can an arbitrators decision be appealed and if so, in what court?
Is the format similar to a regular court format? i.e. can witnesses be called to give evidence? Does the expense of the arbitrator need to be incorporated into the overall consideration of costs?

Are there any limits in terms of what an arbitrator can deal with in the same way as there can be with certain types of cases in the circuit and high courts for some types of cases?

Arbitration is not part of any court, the appointment of arbitrator is usually set out in the arbitration clause, usually by agreement or if no agreement a officer of say the Irish institute of arbitrators will pick one.

Appeal of decisions is now very hard and is set out by statute. Yes people can be called to give evidence under oath, arbitration can only deal with cases where the parties agree usually contract type cases. Costs of the arbitrator are usually paid by both parties before the case, and costs can be awarded by the arbatrator to either party.

Victor

isnottheword wrote: »

If there's an arbitration clause in a contract, is the arbitrator selected by the parties by mutual agreement or appointed by the courts service?

Normally, nothing to do with Courts Service. One of the reasons to use arbitration is to avoid use of courts and the potential for publicity of private matters.

The contract will usually specify how the arbitrator is to be selected. Often, each party will name three potential arbitrators acceptable to them. If there is an overlap, that arbitrator is selected, although it may take a few rounds of nominations. If agreement isn't possible, a request can be made to the Chartered Institute of Arbitrators or other body to nominate, who again, might nominate three potential arbitrators.

Can an arbitrators decision be appealed

Yes, but on limited grounds, e.g. if there is an error on the face of the decision. These days, parties will insist on a reasoned decision, to avoid the likes of arithmetic errors resulting ina decision that neither side wants.

and if so, in what court?

That would depend on the amount of money involved.

Is the format similar to a regular court format? i.e. can witnesses be called to give evidence?

Similar, but certain formalities are likely dispensed with. Subpoenas can't be issued. Arbitration isn't conducted in public.

Does the expense of the arbitrator need to be incorporated into the overall consideration of costs?

Often costs are split 50:50, but it may depend on what the contract says. It might be possible for the arbitrator to award costs.

Are there any limits in terms of what an arbitrator can deal with in the same way as there can be with certain types of cases in the circuit and high courts for some types of cases?

Any value can be considered by an arbitrator, provided the parties and arbitrator are happy to deal with it. It tends to be restricted to business / financial matters.

Arbitrator can deal with any topic, but are likely loathe to deal with matters of (a) illegality or (b) dubious evidence - I once had a case (working for contractor) where paperwork was written up after the fact and the wrong year added to dozens of hand written pages. We dealt with everything else, but told the contractor we wouldn't deal with those. As it happened, dealing with the other matters made an agreement possible before it went before the arbitrator.

Alternatives to arbitration are mediation and conciliation. http://www.mediate.com/articles/sgubinia2.cfm

isnottheword

Really Interested wrote:

arbitration can only deal with cases where the parties agree usually contract type cases.

So if the parties agree insofar as one party has conceded liability on the matter and the only outstanding disagreement is in respect of the extent of damages - whether that be a € amount or the extent of the works the defendant is required to carry out to make good on the damages/loss suffered?

Really Interested wrote: »

The appointment of arbitrator is usually set out in the arbitration clause, usually by agreement or if no agreement a officer of say the Irish institute of arbitrators will pick one

I've just checked the arbitration clause - and it states ..'If any difference shall arise in the amount to be paid under the Policy (liability being otherwise admitted) such difference shall be referred to an arbitrator to be appointed by the parties in accordance with the statutory provisions then in force.'

Really Interested wrote:

Appeal of decisions is now very hard and is set out by statute.

Victor wrote:

Yes, but on limited grounds, e.g. if there is an error on the face of the decision.

So effectively, I (or the other party) would have to argue that there was something fundamentally wrong with the determination of the arbitrator?

Victor wrote: »

One of the reasons to use arbitration is to avoid use of courts and the potential for publicity of private matters.

So the adjudication of an arbitrator is not published - nor can it be published by either party? Can no public reference of any kind be made to the process once it's been finalised?

Victor wrote: »

That would depend on the amount of money involved.

Somewhere between €60 & €100k (depending on which side is to be believed). Presumably, this creates a bit of dilemma as to circuit or high court jurisdiction in the event of an appeal (given the € ceilings in each court)?

Really Interested

isnottheword wrote: »

So if the parties agree insofar as one party has conceded liability on the matter and the only outstanding disagreement is in respect of the extent of damages - whether that be a € amount or the extent of the works the defendant is required to carry out to make good on the damages/loss suffered?

I've just checked the arbitration clause - and it states ..'If any difference shall arise in the amount to be paid under the Policy (liability being otherwise admitted) such difference shall be referred to an arbitrator to be appointed by the parties in accordance with the statutory provisions then in force.'


So effectively, I (or the other party) would have to argue that there was something fundamentally wrong with the determination of the arbitrator?

So the adjudication of an arbitrator is not published - nor can it be published by either party? Can no public reference of any kind be made to the process once it's been finalised?

Somewhere between €60 & €100k (depending on which side is to be believed). Presumably, this creates a bit of dilemma as to circuit or high court jurisdiction in the event of an appeal (given the € ceilings in each court)?

http://www.irishstatutebook.ie/eli/2010/act/1/enacted/en/html


http://www.arthurcox.com/wp-content/uploads/2014/01/Arthur-Cox-Guide-to-the-Arbitration-Act-2010-February-2012.pdf

Plenty to get you started there.