What is Arbitration?
Arbitration is a determinative procedure that can finally, quickly and less expensively resolve disputes according to law, without going to court.
Historically, Arbitrators were industry experts who could apply their years of experience to quickly and cheaply resolve disputes between industry participants.
How does the Arbitration proceed?
Once selected, the Arbitrator conducts the arbitration according to a set of Rules agreed to by the parties, which will govern the arbitration procedure. Our Australian Dispute Resolvers (ADR) Arbitration Rules are based on the UNCITRAL Arbitration Rules 2020, and have been developed to facilitate online resolution provided by the DairyCode.com.au website service.
Just like ‘road rules’ the arbitration Rules stipulate time frames and process steps to allow the parties to produce evidence in support of their claim but also limit the process to what is reasonably necessary.
The Arbitrator sets the date and time for the arbitration and makes other Directions to:
- assist the parties identify the key issues for determination;
- arrange for the evidence to be filed in the proceedings;
- submissions to be prepared and delivered orally or in writing.
Where is the Arbitration held?
As a matter of preference we use video-conferencing services to for preliminary discussions and also for the Arbitration hearings. This is particularly useful when the parties are interstate of international.
It also enables the conduct of the arbitration to be more like a ‘management process’ rather than a ‘court hearing’. The parties can meet to examine various aspects of the claim and arrange to seek external information and expertise before returning to the Arbitration hearing for another session at a different date.
What are the Costs of Arbitration?
The Administration fee is charged for the management of the arbitration. This includes, the selection of the Arbitrator, the provision of videoconferencing facilities and administrative support, document management to facilitate the conduct of the arbitration process. The fee is fixed at $1350 and is shared equally between the parties.
.The Arbitrator’s fees are charged at $450 per hour (plus GST) and each party pays half that fee unless it is otherwise agreed between them.
Other costs of the arbitration may include:
- the cost of any room hire for the conduct of the arbitration hearing (if required)
- the cost of any additional assistance (say of expert reports) agreed by both parties to be necessary for the conduct of the arbitration.
At the conclusion of the arbitration, the Arbitrator will issue a written award setting out their reasons for the decision.
Where empowered to do so, the Arbitrator may also award costs and interest on the claim.