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The wonderful process of Arbitration

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Tim Eastwood

on 27 August 2013

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Transcript of The wonderful process of Arbitration

Individuals are allowed to make claims of one hundred thousand dollars in the Magistrates Court, however arbitration is only applied in cases where less than ten thousand dollars in damages is sought
Arbitration is a faster and cheaper than applying for the Magistrates Court
Brief introduction to Arbitration
Arbitration is an alternative method of civil dispute resolution
During an arbitration session, a third party will listen to both parties and tries to aid them in reaching a decision.
The main difference between arbitration and mediation/conciliation is that the decision that is made may be binding.
Both the decisions from arbitration and the Magistrates Court involve the use of similar principles and procedures that take place between two parties
Both are effective in resolving civil issues because a third party regulates
Both the decisions of the Magistrates Court and Arbitration can be binding.
Arbitration is needed when two parties or individuals cannot resolve an issue
Arbitration is an alternative to court action (litigation)
When the amount sought in civil disputes is less than ten thousand dollars, the Magistrates Court must refer the matter to arbitration
Arbitration is often used for the resolution of commercial disputes. These disputes are usually used in the context of international commerce transactions.
Arbitration is frequently employed in consumer and employment matters, where arbitration may be mandated by the terms of employment or commercial contracts.
The wonderful process of Arbitration
Arbitration is an alternative dispute resolution which is different to both mediation and conciliation because the decision that is made can be binding
Arbitration should be used in the resolution of commerce disputes.
The object of arbitration is to resolve a dispute in a fair and balanced manner, through an impartial third party without unnecessary expense or delay
Through the process of arbitration parties should be able to freely agree on how their dispute should be resolved, which is subject only to safeguards which are necessary in the public interest.
When Arbitration is needed
Similarities between Arbitration and the Magistrate's Court
Arbitration Case Study
Jim’s next door neighbour had constantly been disrupting his sleep with loud music. Jim requested that they should turn down the music because it was disrupting his sleep, yet they did not comply. Jim applied his issue to the Magistrate’s Court but the issue was redirected to arbitration.



Beazer, M., Gray, J. and Filippin, L.

Access & Justice 11e

In-text: (Beazer and Gray et al. 2012, pp. 278-305)

Bibliography: Beazer, M., Gray, J. and Filippin, L. 2012. Access & Justice 11e. South Melbourne: Oxford University Press, pp. 278-305.



Professional Dispute Resolution Centre - Pert Western Australia

In-text: (Pdrc.com.au n.d.)

Bibliography: Pdrc.com.au. n.d.. Professional Dispute Resolution Centre - Pert Western Australia. [online] Available at: http://www.pdrc.com.au/arbitration.asp [Accessed: 24 Aug 2013].


Acas - Arbitration

In-text: (Acas.org.uk 1998)

Bibliography: Acas.org.uk. 1998. Acas - Arbitration. [online] Available at: http://www.acas.org.uk/index.aspx?articleid=1711 [Accessed: 24 Aug 2013].

Jim and his neighbour then began sessions with their arbitrator where they would discuss their viewpoints, while the arbitrator would council and help to guide both parties.

Jim spoke of the ‘horrendous’ conditions he had to endure every night, listening to loud, banging music. He said that some nights he could not sleep due to the noise.

His neighbour interjected by saying that Jim had never made his problem with the noise vocal.
Jim and his neighbour’s arbitrator was an existing member of the tribunal and introduced herself to both parties before discussing the principles of the arbitration. Arbitration is a private discussion where courts do not interfere. The arbitrator explains the rules of engagement for both parties.
The Final Decision
Finally, Jim and his neighbour were able to reach a decision which was binding. No compensation was paid to either party with both of them content with the outcome of their dispute.
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