Arbitration is a formal dispute resolution process governed by the Commercial Arbitration Act 2103 (QLD), or some alternative legislative provisions, in which two or more parties refer their dispute to an independent third party (the arbitral tribunal or arbitrator) for determination. Providing that the arbitration is conducted according to the principles of natural justice its procedures may be varied by the parties to suit the size and complexity of their dispute. A small case, for example, may be heard on the basis of documentary submissions alone. A complex case may benefit from a more judicial style of hearing in which formal claims and defences are lodged, evidence is put forward by each party and tested by cross examination etc. The result of the arbitration, known as the Award, is enforceable in the same manner as a Court judgment.
Commercial arbitration in Australia has become the preferred procedure for parties seeking a binding determination of their dispute and an alternative to Court based litigation. Under the direction of a qualified arbitrator, it is an expedient, private and efficient method of dispute resolution, most significantly it is final with no appeal unless both parties agree.
