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The Benefits of Using Expert Determination for Your Commercial Dispute

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As a business owner, one hurdle you may run into is a commercial dispute with another company. Commercial disputes can be time and cost-intensive, distracting from day-to-day business activities. Therefore, it is in your best interests to efficiently resolve a business disagreement with an effective solution. If your dispute involves technical issues, one way to do so is via expert determination. This article will explain the benefits of using expert determination for your commercial dispute. 

What is Expert Determination?

Expert determination is a form of alternative dispute resolution (ADR) where you and the other party choose an expert to decide on your commercial dispute. This means that the process occurs outside of the courts and has less strict rules compared to commercial litigation. Expert determination is also less formal than arbitration, which is another ADR process. Importantly, it is the most effective when your commercial dispute revolves around some type of technical matter that requires specific knowledge and expertise. It will generally not be an ideal dispute resolution method for factual or legal disputes.

What Are the Benefits of Using Expert Determination?

There are many benefits of using expert determination, which, if you understand, may help you decide if it is right for your commercial dispute. We explore these advantages in more detail below.

Cost-Effectiveness

One of the significant advantages of using expert determination for your commercial dispute is that it is a cost-effective dispute resolution method. One reason for this is that it will usually not concern disagreements over the relevant law or facts. By focusing only on a technical matter, it can be cost-effective even where the issues are complicated. 

Privacy and Confidentiality

A further benefit for your commercial dispute is that, unlike court litigation, this dispute resolution method is private and confidential. This means that there is no risk of negative publicity for your business if the dispute resolution is unsuccessful. This privacy also extends to any confidential information you may raise during the expert determination process, preventing your sensitive details from being exposed in the market. Having confidential proceedings is also useful to ensure you and the other party continue a positive commercial relationship.

Flexibility

Expert determination is also a more flexible process. You and the other party to the contract can choose how the procedure will work and tailor it to the nature of your commercial dispute. This is because there are no rules set out in law about how expert determination should be carried out. One example of this flexibility is the fact that you and the other party are able to choose the specialist who will determine your dispute. As a result, you can ensure the authority you select is properly equipped and capable of addressing the exact issues in question.

Binding Decision and Legal Recourse

A further benefit of expert determination for your commercial dispute is that it usually results in a binding decision. This provides finality for your dispute and allows you to continue regular business operations afterwards. Also, if the expert acts negligently or improperly when making the final decision, you are able to seek recourse. In particular, you will be able to begin proceedings against them in court (by suing). This is not the case, however, when you use court litigation. 

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Key Takeaways

If you fall into a commercial dispute, you may consider resolving it with expert determination. This is an alternative dispute resolution method where parties appoint an expert to make a binding decision. Importantly, this process will best suit you if your dispute is based on a technical matter rather than a factual or legal issue. There are numerous benefits to using expert determination, which include that it is:

  • cost-effective;
  • private and confidential;
  • flexible; and
  • usually binding whilst giving you avenues for legal recourse.

If you have any further questions about if expert determination is right for your commercial dispute, LegalVision’s experienced disputes lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.

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Clare Farmer

Clare Farmer

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