What Is The Importance Of Arbitration

IMPROVING INTERNATIONAL COMMEERCIAL ARBITRATION
1. Fairness
The best part of arbitration is its fair process . The reason behind is
a. The adjudicator is neutral
b. The parties put on more equal footing
NEUTRAL:
The reason which probably best explains the success of international commercial arbitration is the fear of the home-town advantage . Usually when there is a case between a local and a foreigner, courts could not perceive as neutral. It is well known that, unfortunately, corruption is rampant in many jurisdictions of the world. It is also well known that independence is not a luxury many judiciaries can afford . In such cases, it is not even clear that the mode of dispute resolution offered by the relevant national courts may be properly

This is because the goal of the authors who discuss the comparative advantages of arbitration and litigation is to assess whether the parties should decide to resolve their dispute by way of arbitration, or not. Therefore, they logically take their perspective. However, it is probably unwise to generalise in this respect. Arbitration can be cheaper or more expensive, depending on a variety of factors .
This advantage will be even bigger in legal orders where public adjudication is more expensive. The costs of public adjudication are higher in some legal orders than in others. This may be so for a variety of reasons. Judges can obviously be paid varying salaries. A different number of judges and staff may be involved in the settlement of each dispute. The civil procedure of each jurisdiction may lead judges to spend more or less time on each case. This last difference may be the one which makes the biggest difference. In the common law world, trials last several weeks. Judges then draft lengthy decisions. In the civil law world, even in important commercial cases, hearings can last less than an hour. Judges will then typically draft much shorter decisions. Unsurprisingly, judges in the common law tradition typically handle significantly less cases than judges in the civil law

The parties have the right to design the arbitral process accordingly . They can determine the procedural rules which will be applicable during the arbitration. This procedural flexibility can be used in different ways. The parties may shape a process which is only slightly different from the process of the court which would have decided the dispute in the absence of an agreement to arbitrate. But the parties may also wish to shape a process which will be very different from the alternate judicial process, so much so that it may become almost as important an advantage as the fairness of arbitral