Throughout a company’s life cycle, whether small or medium-sized, there come a time when business disputes happen, especially as the company is growing and accumulating numerous clients or consumers in the local or international market or both. This is actually a normal occurrence for any businesses wanting growth, as challenges present opportunities to innovate and offer better products or services. That is why it is always a big help to retain a law firm whom you can consult with any concerns.
Now, if at any point, a business disagreement is so serious that it can severely affect the company’s reputation, dispute resolution is the best decision to take rather than going for a formal litigation. Aside from the fact that formal litigation can be very stressful and risky, it can also be very costly, so it is viewed normally as a last resort.
Alternative Dispute Resolution for SMEs
Dispute resolution lawyers definitely know the risks of formal litigation, so they will naturally advise you to consider the different options under alternative dispute resolution, namely, mediation, adjudication and of course, arbitration.
With regard to business disputes, arbitration is highly recommended and the best suited since the parties are usually located in various jurisdictions; countries or states have different international arbitration law when it comes to international dealings. This legal method is most applicable to companies that offer products or services worldwide, as e-commerce is not just a trend but a necessity to business nowadays. Significantly, the UK is a signatory to the United Nation’s Convention on the Recognition and Enforcement of arbitral awards, which recognises your right to enforce the arbitration award decision made in the UK against the assets of the party in the dispute based in another country signatory to the convention. A solicitor expert in international arbitration law can definitely help in such scenario.
Business Dispute Arbitration: What It Is and How It Works
In a business dispute arbitration, the court appoints an individual arbitrator or a panel of arbitrators, depending on the case at hand, to make a final and binding decision on the disagreement.
Take note, though, that if you are considering arbitration, your right to this alternative dispute resolution method depends on the presence of an arbitration agreement in a business contract. Furthermore, both parties to the case must agree to refer the dispute to the arbitrator or panel of arbitrators, express into writing the location or mode of the hearing and the arbitration method chosen together with legal processes applicable.
The Benefits of Arbitration in SMEs Dispute Challenges
Aside from being cost-effective, there are many benefits to opting for arbitration as a legal strategy chosen by your arbitration lawyer rather than a formal litigation in a commercial dispute. Here are top 5 advantages, given an arbitration agreement is present in your business contract:
- You’re given the legal capacity to decide on some specifics of the arbitration proceeding, such as the arbitrator/s and their qualifications.
- An arbitration award is considered final and binding on the parties.
- There is only limited appeal options. UK law allows an appeal period of 28 days from the decision has been made, with restricted exceptions.
- Arbitration dispute resolution is faster compared to formal litigation.
- The court allows that the arbitration process be made confidential, as well as the award.
Getting Arbitration Lawyer Assistance
Overall, SMEs involved in commercial disputes can reap lots of benefits in choosing arbitration as an alternative dispute resolution. There are many expert arbitration solicitors in the UK who can help them, offering a range of arbitration services including the drafting of arbitration agreements in business contracts, helping both parties agree on resorting to arbitration dispute resolution, assisting with getting an arbitrator/s, providing advice in preparation to the arbitration, attending to the hearings and meetings, presenting and defending your claim, and negotiating the best settlement with a consumer lawyer.
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