Arbitration and conciliation
Arbitration and conciliation law pertains to the legal framework governing alternative dispute resolution (ADR) methods, primarily arbitration and conciliation. Here’s an overview of these concepts:
1. Arbitration :
- Definition: Arbitration is a method of resolving disputes outside of court, where parties submit their dispute to one or more arbitrators who make a binding decision called an arbitral award.
- Process: Parties agree to arbitration either through a contract clause (arbitration agreement) or by mutual consent after a dispute arises. Arbitration proceedings are conducted according to agreed-upon rules or institutional guidelines.
- Arbitral Award: The decision made by the arbitrator(s) is final and binding on the parties, with limited rights of appeal in certain jurisdictions.
- Enforcement: Arbitral awards are enforceable in courts under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which facilitates international enforcement of arbitration awards.
2. Conciliation :
- Definition: Conciliation is a voluntary process where parties to a dispute use a conciliator, who assists them in reaching a mutually acceptable settlement.
- Role of Conciliator: The conciliator facilitates communication between parties, clarifies issues, and explores possible solutions. Unlike arbitration, the conciliator does not impose a decision but helps parties reach a settlement.
- Outcome: If successful, the outcome is a settlement agreement signed by both parties, which becomes binding and enforceable like a contract.
3. Legal Framework:
- Many countries have specific laws governing arbitration and conciliation, which may include provisions on the enforcement of arbitral awards, the role of courts in supporting ADR processes, and the conduct of arbitrators and conciliators.
- International treaties and conventions, such as the UNCITRAL Model Law on International Commercial Arbitration and the Convention on Conciliation and Arbitration within the OSCE, provide guidelines and frameworks for harmonizing arbitration and conciliation practices across borders.
4. Role of Courts:
- Courts play a supportive role in arbitration and conciliation by enforcing arbitral awards, assisting in the appointment of arbitrators or conciliators, and providing interim measures of protection pending arbitration.