When your business becomes involved in a dispute with a customer, supplier or another party, you can resolve them without going to court. Essentially there is more than one method to resolve a dispute. Even when sometimes a lawyer is unable to negotiate a resolution on their own, they need to find some other method of dispute resolution. Many countries these days have come forward to take steps in resolving disputes amicably and protect the interest of an investor. For example, international investment arbitration is one of the strong forms of arbitration that protects the investor’s rights.
Resolving disputes between nations and parties of different countries can be highly complex. But thanks to some dispute resolution methods, it is possible to resolve them and get proper solutions. International dispute resolution law deals with many cases under the Swedish Arbitration Institute of the Swedish Chamber of Commerce, the London Court of International Arbitration and the International Chamber of Commerce.
Role of ICC Arbitrations
ICC statistics shows an increase in the average amount of newly registered cases were increased to $184 Million compared to $54.1 million in 2020. A range of cases was registered between parties from Africa and other parts of the world. ICC arbitrations are of the best quality because they are from trusted institutions and recognised and respected worldwide.
The choice of a dispute resolution method in a commercial contract is not as simple as parties often think. You need to consider some factors that are required to choose the best option for your case. A careful analysis of the different factors has a potential impact on the contract between you and another party. When parties include a clause in their commercial contracts they need to consider a few essential factors and choose their options.
Types of Dispute Resolution Methods
Litigation is one of the common practices of dispute resolution methods. Lawyers especially have a critical role to play in this method as they lead the case from start to finish. It typically involves a defendant facing off against another party before a judge or a jury. Then a judge carefully examines the case and evidence to take decisions carefully. Information is conveyed in hearings and trials that eventually enters the public record.
In mediation, a neutral third party usually help parties to come to a consensus on their own. A professional mediator will facilitate the process for both parties. Rather than imposing a result, a mediator will work with parties to explore their interests and work with parties to help them find a solution that is voluntary, non-binding and convenient.
Arbitration is one of the popular forms of dispute methods where parties hire a judge responsible for resolving disputes. The arbitrator listens to each side and gathers relevant evidence to offer a binding decision. Arbitrators provide confidential and binding decisions. Arbitration is a little more costly than mediation but still more affordable than courts.
You may need to choose a dispute resolution method as per your needs and know some factors to choose the best one for your situation. So, check some critical factors in this article now.
Review the Contract
If your dispute arises in a contractual relationship, parties should review the contract. It is essential to know whether the contract includes a dispute resolution clause and whether the parties have to follow it or not.
Know your Goals
Simply knowing what you want to get out of the dispute resolution process helps you know where to start. If you want an inexpensive dispute resolution technique, you can consider mediation as it is a fast and low-cost procedure. It gives parties the greatest degree of control over their choice. In short, your goal is to have a safe, non-binding procedure.
Select the method suited to your goals
Every dispute resolution has different features. For example, arbitration enables parties to keep matters private, and the decision cannot be challenged after the arbitration decision. Mediation and conciliation on the other hand can be comparatively quick and cheap, but at times it can be harder to enforce your rights. Consider the ability of the three different dispute resolution techniques and know what can lead to a quick settlement.
