Arbitration under the SCC rules is a quick and effective method of settling disputes out of court. The dispute is decided by impartial and expert arbitrators and the process is confidential. SCC arbitration results in an award that cannot be appealed and is enforceable in more than 160 countries.
For arbitration to be an option, there must be an arbitration agreement between the parties. The parties will usually have resolved this by including an arbitration clause (dispute resolution clause) in the overall contract. If there is no such clause at the time the dispute arises, the parties may nevertheless agree to arbitration as a method of dispute resolution.
Global trade is becoming increasingly sophisticated and fast-moving, requiring flexible and agile methods of dispute resolution. In a commercial contractual relationship, no party wants to end up in a dispute, but if one does arise, a quick and efficient resolution is essential to allow the parties to get back to focusing on what matters most – their core business. Court proceedings are a slower option and they are not confidential – unlike arbitration, where both the hearing and the award are kept confidential. Arbitration also gives the parties a great opportunity to participate and influence the process. Among other things, the parties can appoint arbitrators, which is particularly important when specialist knowledge is needed to assess the dispute.
Arbitration is a common and accepted way of resolving disputes throughout the world. An arbitration award cannot be appealed, but there are legislation and international rules to ensure that the arbitration process meets the requirements of legal certainty. This is regulated by law, and issues such as conflicts of interest etc. can, if necessary, be tried in court.
An arbitration can only take place if there is an arbitration agreement between the parties. We recommend that a dispute resolution clause is included in any business agreement.
The SCC rules are modern and flexible and give the parties and the arbitrators means to form an effective procedure adapted for the individual case.