Learn more about effective arbitration

Frequently asked questions

Is Arbitration the same as Mediation?

No. In a mediation an independent third party assists the parties to reach an agreement. Both parties need to be willing to sign the agreement at the end of the mediation. In an arbitration, the parties do not need to agree on the outcome. The Arbitrator has the power to make a binding decision.

Can I make someone go to Arbitration?

Yes, if there is a provision in your contract which provides that disputes will be resolved by arbitration. You can start arbitration proceedings, even if the other party does not want to go to arbitration. There are also some statutes which provide that disputes under those statutes must be resolved by arbitration.

If you do not have a clause in your contract or agreement providing that disputes will be resolved at arbitration, it is still possible to agree with the other party, once the dispute arises, that you will resolve your dispute by arbitration. See the example submission agreement providing for the parties to a dispute to refer that dispute to arbitration.

Can I represent myself in an Arbitration?

Yes. There is no requirement to use a lawyer. You will need to make sure you can explain your claim or defence clearly and that you can provide the relevant documents to support your claim or defence. The Arbitrator can decide issues of fact and of law. If you need help to present (or respond to) the legal arguments, you may want to get a lawyer to help you with that.

How long does Arbitration take?

This depends on a number of factors including how many issues need to be determined, the amount of documentation to be located and exchanged by the parties and the willingness of the parties to engage in a swift and effective process. A simple arbitration with a single issue can be determined within a matter of weeks. Most arbitrations tend to take between 3-6 months with more complex arbitrations taking longer.

However, unlike in the courts, you will not have to wait until a court-room or a judge is available. The I-Arbitrate members commit to having availability to deal with your case when they accept an appointment.

Who pays for the Arbitrator?

The usual process is that one or more of the parties pays the Arbitrator’s fees in advance (or pays the fees into a trust account). In the final Arbitration Award, the Arbitrator can include a decision on who should pay the Arbitrator’s fees and in what proportion.

How much does Arbitration cost?

The same issues that affect how long an arbitration takes, affect how much it costs. The parties can control costs and the time involved by being organised, limiting the amount of documentation that needs to be considered and focussing on the issues that need to be resolved.

The I-Arbitrate members will discuss costs with the parties at the outset of their appointment. The Arbitrator’s fees will be based on an hourly rate or, in some cases, it will be possible to agree on a fixed fee for the entire arbitration or for different stages of the arbitration.

Can I get my costs back if I win?

The general rule is that costs (being the legal costs incurred by a party in relation to the arbitration and the costs and expenses of the arbitrator) are awarded in favour of the party who succeeds in the arbitration, that is, costs follow the event.

However, sometimes the arbitral tribunal will decide that each party should bear its own costs. The parties can also agree at the outset that they each pay their own costs, regardless of the outcome.

Is there always a hearing?

The Arbitration Act 1996 (NZ) provides (section 24(1)), that the parties can agree that no hearing is necessary. But, if they have not so agreed, then if any party calls for a hearing, a hearing must be held.

Is there a quick and low-cost option?

Can I appeal if I am not happy with the result?

You can only appeal on a question of law, not a question of fact.
Unless the parties have specifically provided for the right to appeal in their arbitration agreement, they need to apply for the permission of the High Court to appeal on a point of law (Arbitration Act 1996 (NZ), Schedule 2, clause 5).

The parties cannot appeal on a point of law if they have agreed to exclude that right, or if the arbitration is an international arbitration.  

The information on this site is not intended to be legal advice. No liability is assumed by I-Arbitrate or its members for losses suffered by any person or organisation relying directly or indirectly on information published on this site.

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