We do not have an arbitration clause with a supplier, but the supplier has suggested that we submit our current dispute to arbitration to avoid a public trial. I am unsure whether that would benefit us. What are the pros and cons?
You can agree to arbitration after a dispute arises by signing a submission agreement, and it is often a sensible choice where privacy and speed matter. Advantages include confidentiality, the ability to choose arbitrators with technical expertise, flexible procedures and limited rights of appeal, which bring finality. Disadvantages include the parties paying the arbitrator's fees and hearing costs, which can be higher than court fees, more limited routes to challenge errors, and the absence of a public precedent. The Arbitration Act 1996 applies by default, including its schedule of rules. Before signing, negotiate the number and identity of arbitrators, the seat and rules, the timetable and how costs will be allocated. Have a lawyer check that the agreement covers all the issues.
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