{"id":186675,"date":"2024-03-20T02:42:25","date_gmt":"2024-03-20T02:42:25","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=186675"},"modified":"2024-05-07T01:32:34","modified_gmt":"2024-05-07T00:32:34","slug":"challenges-arbitration-commercial-disputes","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/disputes-litigation\/challenges-arbitration-commercial-disputes\/","title":{"rendered":"3 Potential Challenges in Arbitration for Commercial Disputes"},"content":{"rendered":"\n

If a commercial dispute does occur, you, as a business owner, need to understand the methods to resolve it and what these involve. It is best to avoid commercial court litigation, which can be costly. Commercial arbitration, which includes international arbitration, is one possible alternative dispute resolution (ADR) method for your business. While national and international commercial arbitration for international trade as a form of commercial dispute resolution can be effective, it can also present potential challenges. Being aware of arbitration proceedings challenges can help you avoid them in commercial disputes. This article will explain three potential challenges in arbitration for your commercial dispute.<\/p>\n\n\n\n

Defining Commercial Arbitration<\/h2>\n\n\n\n

Commercial arbitration is an ADR method<\/a> to resolve a business dispute. It is a formal procedure that lies outside of the court and is confidential. Commercial arbitration includes an independent third-party arbitrator or panel of arbitrators. They examine and listen to both parties’ evidence provided on the commercial dispute. They will then use their expertise to decide on the commercial dispute with a legally binding decision. This is known as an arbitration award or arbitral award. <\/p>\n\n\n

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Guide to Resolving UK Business Disputes<\/div>\n
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This guide outlines how to resolve commercial disputes.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n

Three Potential Challenges in Arbitration for Commercial Disputes<\/h2>\n\n\n\n

Arbitration is an alternative to commercial litigation<\/a> and could work well for your commercial dispute. However, there can be potential challenges as part of the arbitration procedure. We explain three challenges in commercial arbitration below.\u00a0<\/p>\n\n\n\n

1. Enforcing or Disputing an Arbitral Award<\/h3>\n\n\n\n

When arbitration proceedings end, the arbitrator makes a legally binding decision, which is an arbitral award. A challenge for your arbitration dispute could be if you wish to enforce or dispute an arbitral award. This is because to do either, you must go through a court of law, despite the arbitral award being legally binding. Furthermore, if you or the other party wish to dispute an arbitral award, there are limited legal grounds for doing so. Court proceedings in court are also very costly, and these expenses can sometimes outweigh your reasons for resorting to ADR in the first place.<\/p>\n\n\n\n

2. Using Virtual Hearings for Commercial Arbitration<\/h3>\n\n\n\n

It is possible to carry out your arbitration using virtual hearings<\/a>. Whilst this was usually mandatory during the COVID-19 pandemic, you may feel online arbitration still suits your circumstances better. For example, virtual proceedings may be useful as they:<\/p>\n\n\n\n