Arbitration is a method of alternative dispute resolution that has a number of advantages to offer. When a dispute occurs between parties, they can agree to submit their difference to an Arbitral Tribunal composed of one or three persons. Such a dispute can derive from or be connected to a contractual or other relationship that exists between the parties. On the basis of the Request for Arbitration and the parties’ ensuing explanations, the Arbitral Tribunal will render a binding decision, an ‘arbitral Award’. If necessary, this Award may be enforced.
An arbitration proceeding may only take place with the explicit agreement of all the parties involved. This agreement can either be inserted as a clause in an existing contract or the parties may enter into a specific agreement to arbitrate once the dispute has arisen.
WHY CHOOSE ARBITRATION?
A CEPANI arbitration offers a number of benefits:
An arbitration proceeding monitored by CEPANI lasts on average 8 months to one year. This limited period of time is due to the fact that the arbitral Award is final and not subject to appeal, the simplicity of the proceedings and the availability and expertise of the arbitrators. In the case of a dispute of limited financial importance (< 25,000 EUR), the time period is limited to approximately four months, due to the fact that only one arbitrator is appointed and that the proceedings are conducted, in principle, entirely in writing.
Contrary to proceedings before the judicial courts, CEPANI arbitrations are strictly confidential. Arbitrators have a duty to work with the utmost discretion. When the parties are heard, the hearings are not public. Moreover, the arbitral Award is only published with the explicit permission of all the parties.
- EXPERT ARBITRATORS
Arbitrators are always appointed in an arbitration on the basis of their having the required expertise.
In a CEPANI arbitration, the costs are determined by a scale based on the amount in dispute. CEPANI works with fixed fee schedules that allow the parties to receive an advance estimate of the cost of the arbitration proceedings that they are about to initiate. The lack of appeal and the simplicity of the proceedings also allow the parties to reduce the costs.
Euroarbitration proceedings now adminstered by CEPANI
Euroarbitration and CEPANI have agreed that CEPANI will take over the management of any procedures started up under Euroarbitration in the future. The members of Euroarbitration unanimously felt that CEPANI, in light of the quality of its Rules and its administration, was to be appointed to administer the disputes arising under Euroarbitration.