Certain Misconceptions about Arbitration

Abstract

If you ask a lawyer if he knows what arbitration is, you will probably receive a somewhat cynical reply, ‘sure, I do’. But does he really? Arbitration is well known as an alternative means of dispute settlement for a long time but there are still certain misconceptions about it, even among the people involved in the process, whether they are lawyers, clients or even arbitrators themselves. If this lack of knowledge concerns fundamental rules by which arbitration operates then that could destroy the system.

This article deals with some of the common misconceptions about arbitration ranging from the impartiality and independence of arbitrators, the role of the court in reviewing arbitral awards to the choice of arbitration as an alternative means of dispute resolution.

Even though arbitration affords a more flexible means for the parties to have their dispute resolved, it is not necessarily true that it is more time and cost effective than litigation. One has to really study the pros and cons of going to arbitration in each particular case to know whether to use it or not.