Why Arbitrate?

Arbitration is a private, confidential process that can finally resolve commercial disputes in a prompt and cost efficient manner. Instead of resorting to the strictures, delays and inherent expense in the litigation process, parties can select an experienced, efficient arbitrator to manage and resolve their disputes according to rules and a timetable that the parties select. Arbitration can arise as a result of an arbitration clause in a current agreement or because the parties agree that a dispute otherwise headed for litigation should be arbitrated.

Many arbitrations, particularly international ones, are managed by arbitral institutions that provide rules of procedure, assist in administration and will be available to help the parties in selecting an arbitrator if they cannot agree. The institutions most familiar to Canadians are ADR Chambers and ADR Chambers International, based in Toronto, The ADR Institute of Canada, head quartered in Kanata, Ontario, The British Columbia International Commercial Arbitration Centre, based in Vancouver, British Columbia, the Quebec National and International Commercial Arbitration Centre, based in Montreal and Quebec City, Quebec.

Arbitration may also be pursued on an ad hoc basis under a structure provided by the laws of the local jurisdiction, or. in the case of international arbitrations, pursuant to the UNCITRAL Rules.

There are important advantages to the parties and some disadvantages in selecting arbitration rather than local court proceedings. To many parties the major advantages of the arbitration process is usually private, hearings are closed to the public and the parties are not embarrassed by the public release of confidential or embarrassing information. It also may be an advantage to the parties to be able to choose their own judges, select the timing and procedure for the hearing and manage the process themselves. There is a flexibility in arbitration which is not found in the rigid rules that must prevail to regulate litigation in the western world. Depending on the skill and experience of the arbitrator the award can be reached quickly and fairly. The parties can provide in an arbitration agreement that the arbitrator's award is final and binding and is not subject to appeal on the merits in any court.