Commercial Arbitration

As I was going through latest news in the world of Commercial Law, I came across this interesting piece of information. I hope you guys will find it interesting.

Arbitration is a system to resolve conflicts; it is an alternative of the judicial system. Both parties voluntarily are agreed to put forward their conflict to a third party (arbitrator), who will decide the out come of the conflict.

In Spain, the law which regulates this field is (Ley 60/2003 de arbitraje). The judgment is issued through (Laudo Arbitral), this instrument declares the end of the proceedings and in addition this resolution has the same value as if the judgment issued by a Judge. The proceedings are beneficial for the both parties, because a decision has been made by the arbitrator it cannot be appealed and is also automatically enforceable. Fundamentally, this proceeding derives from a contract; the contract establishes the conditions of the proceedings.

The celerity of the proceedings, the deadline of the resolution will be six months from the start of the proceedings. The costs of the proceedings are reduced considerably in comparison of the judicial system. The proceedings are very effective in resolving the conflict given that the Laudo will be enforceable for both parties and can not be appealed. The proceedings are confidential which makes a difference to the courts system which are published. Finally, the Laudo can come to decisions which a court would not have the power to decide.

In order to get an efficient arbitration, it is convenient to study analyse each case to ensure the case is concrete. The contract which regulates the proceedings must be drafted carefully to avoid negative consequences once the laudo has been issued by the arbitrator.

We can distinguish four different classes of arbitration.

Institutional arbitration, the proceeding is run by public administration and the arbitration is comprised of a society legality constituted. 

Arbitration of law (Arbitraje de Derecho) this is addressed by the Lawyer.

Equality (Arbitraje de Equidad) in this case it is not necessary to appoint a Lawyer.

Ad hoc Arbitration (Arbitraje ad hoc), in this case, the proceeding are run by an independent party who has been appointed by both parties through an initial agreement.

I consider this a good solution to settling a conflict, because the parties can set out the conditions of the proceedings in advance and also the periods of the proceedings are reduced considerably.

Find more on Commercial Arbitration via the link below:
http://www.wisegeek.com/what-is-commercial-arbitration.htm