Arbitration is one of the kinds of Alternative Dispute Resolution, or more simply called, ADR. It is a simple technique for resolving disputes extra-judicially. In arbitration, parties that form an arbitral tribunal hear the dispute then make a decision that the contracting parties will need to abide by. There are some companies that provide ADR services in Canada.
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This decision is referred to as an "arbitral award". It is important to note that arbitration is a form of alternative dispute resolution which is different from Mediation or even a Judicial Proceeding.
Advantages
In order to understand the advantages that arbitration brings, it is important to look into the very nature of its alternative, which is the judicial proceedings or court proceedings. In litigation, the parties do not choose the judge.
The process is long and tedious and because of this, becomes expensive after each hearing. The difficulty in a court process is that the judge, or the jury in some jurisdictions, is not expected nor has experience in the subject matter.
Arbitration, on the other hand, presents a more enlightening option. First is that the arbitrators, those who are the judges to the dispute, are chosen by the disputing parties themselves.
Thus, the disputing parties have the option to choose highly experienced and specialized persons as arbitrators. Considering this, the parties can rest assured that their case will be tried wisely.