Arbitration and Adjudication

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When examining the evidence in favour of resolving disputes through arbitration - in which parties take their conflict to an impartial third party, who provides them with a resolution (Schellenberg 1996, p 196) - rather than adjudication - resolution of a dispute through the court system - both the identity of the involved parties and the scale of the dispute must be taken into account.


These three sets of circumstances demand specific considerations and pose their own set of problems. I would like to begin, however, by briefly outlining some important qualifications for a study of these two methods of conflict resolution.
One of the most problematic issues that arise when considering the efficacy of arbitration, as compared to adjudication, is the comparative lack of detailed information regarding the involved parties. In fact, as Walter Matti remarks, "the study of the practice of international commercial arbitration is like peering into the dark" (2001, p 919). Such cases by nature tend to be far less publicised than those settled through litigation, and indeed, many of the parties - be they individuals or companies - who seek private arbitration do so precisely because they wish to avoid the risk of having private information made public. The information used to argue either for or against the inherent superiority of arbitration cannot, therefore, be considered exhaustive.
At the same time, however, Matti points out that the popularity of arbitration, particularly as a means of resolving international disputes, has increased exponentially over the past thirty years (2001, p 920). ...
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