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Arbitration Dispute Settlement Procedure

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Arbitration Dispute Settlement Procedure

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Arbitration Dispute Settlement Procedure

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Discuss About The Arbitration Dispute Settlement Procedure?


Arbitration is the dispute settlement procedure where the impartial party (Arbitrator) is selected to study a case as well as hear both sides of the party so as to arrive at agreement; some of its features include law;

The Arbitrator controls the outcome; he has the power to decide.
Extensive discovery is usually required
Arbitrator listens to the party facts as well as the evidence and gives the award
The parties involved present the case and then testifies under the oath
Arbitration process is formal; there is no private communication involved between the party and the arbitrator
The decision are based on evidence, facts as well as the law
The result is either lose or win the award hence relations are lost
It is a bit expensive compared to meditation but less costly compared to litigation
It is private, but the decisions are publicly available

Mediation is the process where a mediator facilitates dialogue in a multi-stage manner to help both parties reach a conclusion plus satisfactory agreement. Its features include;

The parties involved in the dispute control the outcome
The mediator does not have the power to make decisions. A decision is made only with the party consent as well as approval
There is a voluntary exchange of information, but it is limited. Here the parties involved share information that can be used as an assist in reaching a decision
The mediator assists the parties in defining plus understanding the problems in every side’s interests
Individuals do not testify under the oath, they vent feelings, share stories as well as take part in creative problem solving
Mediation is informal. There are no attorneys. The parties involved are just active participants
Joint plus private meetings and discussions between the counsel and their parties is allowed
The outcome is not based on managememt or evidence but the needs of the parties involved
The results is mutually satisfactory; this means that a relationship can either be created or maintained
The process is less costly compared to arbitration
It is private and confidential

Conciliation is the process of resolving disputes where an independent candidate (conciliator) helps the parties to reach an agreement

The conciliator cannot enforce his decisions since he does not have the power
No prior agreement is required
The process is available for existing disputes
There no legal proceedings compared to arbitration


In the three processes (mediation, arbitration, and conciliation), the parties involved in the dispute have control over the format of the proceedings. Selection of unbiased, ground rules, timing as well as the ability to adjourn the procedure at any moment is under the parties’ mandate. This enables them to establish a comfortable setting plus a conducive environment for settling the dispute
They allow direct involvement of the concerned parties contrary to litigation which is open only for the attorneys
They foster a mutual approach to disputes in a legal way. The parties merely bear grudges against each other or dissatisfaction from the result of the trial
These methods of dispute resolving are fast, private and less expensive compared to trial

Blain, N., Goodman, J., & Loewenberg, J. (1987). Mediation, Conciliation and Arbitration-An International Comparison of Australia, Great Britain and the United States. Int’l Lab. Rev., 126, 179.
Cooley, J. W. (1985). Arbitration vs. mediation-explaining the differences. Judicature, 69, 263.
Fisher, R. J., & Keashly, L. (1991). The potential complementarity of mediation and consultation within a contingency model of third party intervention. Journal of Peace finanacial Research, 28(1), 29-42.
Sgubini, A., Prieditis, M., & Marighetto, A. (2004). Arbitration, Mediation and Conciliation: differences and similarities from an International and Italian business perspective.

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