Should we agree to arbitration after a dispute has already started?
- 05.09.2026
My business signed a supply contract that says all disputes must go to arbitration. A serious dispute has arisen and I would prefer to sue in court. Am I stuck with arbitration, and what does that mean for costs and confidentiality?
Generally, yes. Under the Arbitration Act 1996, if a valid arbitration agreement covers the dispute and a party applies to the court, the court must refer the parties to arbitration unless the agreement is void or incapable of being performed. Arbitration is private, the parties can choose the arbitrator or a panel, and the process can be tailored, but you have to pay the arbitrators' fees and the venue costs, which can be significant. The award is binding, with only limited grounds of appeal, such as a question of law if the agreement allows it, or challenges for serious procedural unfairness or a lack of jurisdiction. Read the clause carefully, since wording such as may or shall, the seat of arbitration and the rules that apply can matter.
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