What is Arbitration?
Arbitration is a form of alternative dispute resolution that is conducted outside of the courts. It is a proceeding in which the nominated arbitrator(s) as an impartial third party, will judge to make decisions on a case of two parties’ claims. To arbitrate, both parties should agree upon consent to conduct arbitration to resolve the dispute. As a result of arbitration, the arbitrator(s) will make out an “arbitration award”. This document is final and binding, shall one side of the concerned parties refuse to abide by it, both parties are obliged to be in litigation. Arbitration is considered to be international when the parties, contracts or legal matters extended beyond a single jurisdiction. The distinction between domestic and international arbitration is important as it will affect the enforcement of the award. Multiple places have arbitration services, it is a common dispute resolution practice in many developed countries/ cities. Among all, Hong Kong is one of the active arbitral markets. At the Queen Mary University of London, the sixth International Arbitration Survey ranked Hong Kong as the third-best arbitration location.
What are the advantages of arbitration?
- Confidentiality
The arbitration will take place by securing both parties’ information that has been revealed at any stage of the process.
- Procedural flexibility
Arbitration offer not only the avoidance of time taking tribunal procedures but at the same time, it meets the interests of both parties.
- Professional procedure
Since arbitrator(s) could have served the professions in the field of law as lawyer(s) or judge(s) before, it guarantees proficiency during the procedure.
- Bilateral benefit
By avoiding litigation, arbitration can settle an agreement upon both parties with less time consumption and expenses. This is due to its arrangement flexibility and award finality.
- Cross-border acceptance and enforceability
The New York Convention is one of the prestigious international treaties worldwide. This piece of agreement supports the arbitral award with the authority to be applied in 160 signatory countries.
Why use the arbitration service at HKCICA?
- Selection of appropriate professional arbitrators / Formation of the Arbitral Tribunal
The international arbitrators of the Hong Kong International Commercial Arbitration Centre all conceive professional qualifications such as international arbitrators, academicians of arbitration and chartered arbitrators of the International Dispute Resolution & Risk Management Institute (“IDRRMI”), which are accredited by many professional organizations, colleges, official bodies and government agencies. Among them are the former Secretary for Justice, former judges, former representatives of the United Nations Commission on Trade Law, etc. from various regions.Currently, our arbitrators come from 20 different countries, providing services in more than 50 regions around the world. Such large coverage allows clients to select both the arbitrator and location for arbitration according to their needs. They are also offered the flexibility to choose other dispute resolution solutions within the dispute resolution systems of IDRRMI.
- Flexible procedure
The flexibility of switching to other dispute resolutions and locations in the process of arbitration according to their will.
- Worldwide enforcement coverage
The connection with over 50 dispute resolution organizations worldwide, the region of enforceable jurisdiction extends beyond the New York Convention’s signatory states. Allowing comprehensive coverage, including in the regions of the Belt and Road projects.