June 19, 2024
arbitration lawyer

The Pros and Cons of Legal Arbitration

Arbitration is the method to solve disputes without going to court. Lawyers sometimes recommend arbitration as a method to the client to solve a claim. When trying to resolve a dispute using arbitration, the dispute is submitted to a third party – the arbitrator. The arbitrator hears both the parties and resolves the dispute. The presentation offered by the parties may be documents submitted to the arbitrator from each side. Additionally, each party can make an oral argument in person as well. Typically, each party will have an attorney to make their oral arguments, and occasionally, it includes a witness who testifies.

Most of the real estate and business disputes tend to lean towards arbitration for their dispute resolution. Most of the real estate companies’ agreements will have it mentioned that the disputes will be resolved through arbitration. And when in UAE, you can always reach out to an arbitration lawyer in Dubai who will follow the first law on arbitration laid by the UAE government. Every arbitration law firm in Dubai will have to make sure that they follow this law.


Here are the advantages of arbitration:

  1. Save time:

If in UAE, an arbitration lawyer in Dubai can help you with the arbitration process, which can save time for the parties involved and save time for the court. Most civil cases might take a lot of time to be solved by the courts. Compared to the resolution offered through arbitration, the resolution offered is speedy and very time efficient. Commercial disputes, which require the fastest resolutions, can often choose arbitration. This emerging alternative process of dispute resolution reduces the time of the adjudication process. Businessmen often choose arbitration to resolve the disputes as it is a flexible process whereby the parties themselves choose the venue selection and the proceeding time.

  1. Fair:

Arbitration is a fair process right from its inception. The parties involved have a say in selecting the arbitrators. The process also includes hearing the involved parties individually. And the entire process is set up for the parties to settle the dispute amicably.

  1. Cost:

The entire arbitration process saves not just time but also money. Comparing it to the normal adjudication process, the cost involved in arbitration is minimal. This is also one reason why people choose the arbitration process to resolve their disputes outside the court.

  1. Confidentiality:

There is a significant amount of confidentiality involved in the entire arbitration process. During the entire process, it is made sure that the parties’ confidentiality has not tampered with.

  1. Binding:

After the entire arbitration process, the decision made involves a sense of culmination due to several factors. Factors include the agreement between the parties involved, the legality involved, non-appealable conditions of the arbitral award, etc. That’s why arbitration is preferred by several people over other forms of dispute resolution, as it provides a sense of surety. Also, the arbitral award is enforceable, making arbitration a binding process.

  1. Simple procedures

The legal outcome from an arbitration process is adaptable to the two parties involved in the dispute resolution process. Each party does not even have to hire a lawyer to represent them.

7.Agreement based awards:

Arbitration works on the basis of an absolute agreement between the two parties. There can be no win-win situation without both parties coming to an agreement with each other.

  1. Hostility prevention:

Hostility between the two parties is prevented since the arbitration process includes scope for discussion and resolving the issue at hand amicably. Compared to the process in the court, there can be open argumentation, and there will be more chances of parties hurling accusations. An amicable discussion is possible with the arbitration.

  1. Informal process:

The process of arbitration includes choosing the arbitrator based on the choice of the parties. The setting during the time of the process is informal and is open to discussion. Meanwhile, the courtroom process has to follow a level of formality, whereas, during the arbitration process, there can be friendly exchange of words without strictly following formal mannerisms.

  1. Total control:

Compared to any other dispute resolution process, the arbitration process offers greater control for both parties in dispute. This is due to the fact that even before the start of the dispute resolution, the parties are in a position to have full control over the dispute. Both the parties will be directly involved in deciding where the process involves taking their consent before deciding over an amicable agreement.

Disadvantages of arbitration

  1. Scope of appeal:

The scope of appeal in an arbitration process is minimal. This is one of the most significant disadvantages of the arbitration award process. Whenever there’s an award from the arbitration process, you will have little to no scope in appealing or correcting the award.

  1. Choosing a guideline:

There are a variety of guidelines available in the arbitration process, and it often becomes too difficult to choose and follow a guideline from amongst them. In the same way, several institutions are offering the arbitration facility that leads to confusion and difficulty to choose amongst these institutions.

  1. Different statutes:

In some countries, the domestic and international arbitration process carries different statutes. This is problematic when ascertaining the applicability of the law related to international arbitration.

  1. Language barrier:

Another significant disadvantage in the arbitration process is the language barrier. The cross-cultural language barrier makes it difficult to pass the communication amongst the parties involved. When there is a difference in language and culture between the two regions involved in the arbitration process, there can always be a chance of discrepancy. This tends to make the process too difficult, and reaching a solution becomes tough. The language barrier can make it hard to bridge the gap and reach a unified solution.

UAE Arbitration is fast reaching a popular status when compared to other alternative dispute resolutions offered to settle disputes amongst parties today. Entities and parties are choosing to forego the traditional court system for a more fast-paced, economical resolution of disputes with the arbitration process. It is proving to be an attractive alternative to other dispute resolution processes. However, everyone choosing the arbitration process should be wary of the advantages and the disadvantages of the process involved. And since the arbitrator is greatly governed by what the parties state in the arbitration process, any issues or concerns related to the process can largely be addressed through a well-drafted agreement. This ensures a fair and efficient resolution for both parties.

Sonu Singh

I am enthusiastic blogger & SEO expert. I am digitally savvy and love to learn new things about the world of digital technology. I loves challenges come in my way. I also prefer to share useful information such as SEO, Google Algorithm Update, SMM, PPC, WordPress, Web Hosting, Affiliate Marketing etc.

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