Arbitration has become the most convenient and popular method of resolving international commercial disputes. An arbitration clause is included not only in valuable commercial contracts, but also in small contracts. This is due to the simplicity of the procedure, the timing and results. Even in international treaties, the parties prefer to include arbitration clauses because of the possibility of choosing a neutral location and laws, as well as the possibility of applying international arbitral decisions thanks to the New York Convention.
By the way, if you need legal advice on the revision of the arbitration agreement, do not hesitate to contact the experts of our company.
Not all disputes arise due to the high cost of the contract. The disputed amounts may be less quantitative, and the appeal to the ordinary arbitration procedure might become economically inexpedient. Many parties are reluctant to start arbitration, even if they have disputes, due to the potential arbitration costs.
Consequently, online arbitration is becoming more and more popular these days. Online arbitrations are cheaper than ordinary arbitrations and easy to process.
To start an online arbitration, you need the arbitration institution to provide you with an online platform, and therefore you must include the name of the arbitration organization in the agreement. It should also be specifically indicated that dispute resolution through arbitration will take place online.
It is preferable to choose an arbitration centre whose office is located in the place of arbitration, so that the center is aware of the procedural law of this jurisdiction. It is also advisable not to choose foreign law as substantive law in online arbitration. Consequently, the parties are advised to choose both procedural law and substantive law of the jurisdiction in which the arbitration takes place.
Appointment of an Arbitrator
All online arbitrations are managed by arbitration institutions. As a rule, the injured party sends a request for arbitration to an arbitration institution authorized to administer arbitration, indicating an arbitration clause between the parties, a list of disputes, the number of disputes, etc., as well as a request to appoint an arbitrator. The party that has decided to initiate the arbitration may be asked to pay part of the costs at this time. As a rule, to resolve a business dispute through online arbitration, a single arbitrator is appointed.
In order to initiate proceedings in a commercial dispute, the arbitrator, the parties and their attorneys must be granted access (login and password) to enter the arbitration platform of a specific arbitration institution. Using the aforementioned username and password, the parties and their attorneys can access a page that is specific to the case. Only the Institution, the Parties, Lawyers and the Arbitrator are allowed to enter this page. On this page, you can download claims, statements of defense, objections, if any, affidavits, etc. After the party uploads the document, all other parties to the proceedings, lawyers, arbitrator and institution are notified. One set of original documents must be sent to the arbitration institution by courier / mail.
If the parties decide to resolve a business dispute through online arbitration, there is no requirement to verbally examine witnesses. Basically, there are no verbal hearings unless the parties insist. If an oral argument is allowed by the arbitrator, the arguments must be heard by the arbitrator online. The parties must answer the questions finally resolved by the arbitrator in writing, which is called “written statements”. The arbitrator must study both submissions and make a final decision.
The process of resolving a financial dispute through online arbitration is very convenient and less costly for financial companies, contractors, banks, leasing companies, etc. Parties may attend arbitration hearings from their offices. Therefore, it is cheaper and easier for all.
The arbitrator reviews the documents and statements submitted by the parties, written statements and oral hearings (if any) and makes a final decision. Hard copies and printouts of the decision must be sent to the parties after payment of the required court fee.
Online arbitration makes convenient the interaction of all participants in the process. Therefore, there is practically no alternative to the further spread of online arbitration.
If you need advice of a qualified lawyer in resolving international commercial disputes, please contact IQ Decision UK experts. Our professionals will provide you with advice on online arbitration, and offer mediator services in Europe as well.