• by Zingtim Gambo. ACArb.

Ways By Which An Arbitration Differs From A Court Proceeding

One of the most significant differences between arbitration and a court proceeding is that arbitration is typically faster and less formal than court proceedings. This is because the arbitrator has more flexibility in terms of the rules of evidence and procedure that apply, which allows for a quicker resolution of the dispute. Additionally, the parties can choose an arbitrator who has expertise in the subject matter of the dispute, which can result in a more informed and accurate decision.

Another significant difference between arbitration and a court proceeding is that arbitration decisions are typically final and binding. This means that there is limited opportunity for appeal, and the decision of the arbitrator is generally the end of the matter. In contrast, a court proceeding can be appealed, and the decision of the court can be overturned by a higher court in some cases.

Types Of Disputes That Can Be Resolved Through Arbitration

The Nigerian Arbitration and Conciliation Act provides for the resolution of various disputes through arbitration. These disputes include:

• 1. Commercial disputes: This includes disputes arising from commercial transactions, contracts, agreements, and business dealings between parties.
• 2. Employment disputes: This includes disputes arising from the employment relationship between an employer and an employee, including disputes over wages, wrongful termination, discrimination, and harassment.
• 3. Construction disputes: This includes disputes arising from construction contracts, including disputes over design, construction defects, breaches of contract, and delays or disruptions in construction.
• 4. International disputes: This includes disputes arising from international trade and investment transactions, including disputes over contracts, joint ventures, and cross-border transactions.
• 5. Intellectual property disputes: This includes disputes arising from patents, trademarks, copyrights, and other forms of intellectual property rights.
• 6. Consumer disputes: This includes disputes arising from consumer transactions, including disputes over product defects, warranties, and consumer protection laws.

The main differences between arbitration and a court proceeding are speed, formality, and finality of the decision. While arbitration offers certain benefits to the parties involved, it is essential to understand the potential drawbacks of arbitration and to carefully consider the implications of including an arbitration clause in a contract.