Arbitration in Aviation

Kolkey, D. M., Chernick, R., & Neal, B. R. (2012). Practitioners handbook on international arbitration and mediation (3rd ed.). Huntington: JurisNet.

Arbitration is legal technique used to resolve any disputes outside of the courts. Arbitration allows for speedy and cheap resolution of any disputes, the parties involved in a dispute agree to appoint a third person (arbitrator) who will hear their testimonies, and look into the evidence they provide. The arbitrator's decision cannot be challenged in a law court as it is considered final and the parties involved have to accept the decision (Brams & Merrill, 1986). There are only very limited circumstances where the decision of an arbitrator can be challenged, and this is mostly if there can be proof from one of the parties showing that the arbitrator was biased in their decision or ruling. The chosen arbitrator will be an experienced person in the area of the dispute.

There are different forms of alternative dispute resolutions, each having advantages and disadvantages. The key to understanding the advantages and disadvantages of the forms of dispute resolutions is the be knowledgeable of the meaning and the use of alternative dispute resolution. Alternative Dispute Resolution is said to, “offers parties alternative means of resolving their differences outside actual courtroom litigation and the costly preparation for it”, (Jennings, M., 2015 pg. 101). Arbitration is one form of dispute resolution. Arbitration is defined as the, “oldest form of ADR and was once the most popular form of alternative dispute, but its increasing costs and time commitment have found businesses and lawyers labeling it, no different from litigation” (Jennings, M., 2015 pg. 101). The advantages of arbitration include; the members of both parties agree to have the same arbitrator, someone both sides trust. Other advantages include; the process of arbitration is quicker than waiting on a court date, the fees are not expensive as it is when paying court fees, there is very limited chances that an appeal will happen, and there is more privacy in arbitration compared to having a trial. The disadvantages of arbitration are; once a decision is made it is final because both parties gave up the right to an appeal, in some cases the arbitrator fees can be more expensive depending on the evidence needed, any evidence can be considered in arbitration unlike in court

I: In the arbitration process, the parties bring a dispute in front of an arbitrator that imposes a decision. To avoid various expenses of litigation, disputing parties sometimes agree to have a third party decide the merits of the dispute.

4. What are the common advantages and disadvantages of ad hoc ad hoc arbitration? (5)

An important reason for this popularity is that States have consented in advance to compulsory dispute settlement by the WTO and also, but to a lesser extent, by ICSID arbitration. In the case of the WTO it is the WTO Dispute Settlement Understanding that confers compulsory jurisdiction on the WTO Dispute Settlement System; while in the case of ICSID a large number of States have consented in advance to ICSID jurisdiction over their disputes with investors by means of express provisions in Bilateral Investment Treaties. Moreover, an important additional reason for the widespread use of ICSID as a forum for international dispute settlement is that investors – who are in effect the substantive rights holders under Bilateral Investment Treaties – are often given the right to institute ICSID arbitration directly against the host State.

The primary reason why the Arbitration act, 1940 was repealed was for the simple reason of minimizing court interference in the arbitration. There is thin line of difference between interference and assistance of court system in the case of arbitration. The former part could help in making arbitration strong whereas in the latter case it might ruin the basic idea of arbitration that is adjudication by the private judge, as parties could find themselves in court all over again. This paper is a quick and brief analysis as to how in the pre arbitration stage, and during arbitration what court does is not much of an interference rather assistance however there are cases where court actually interfered rather than assisting them, but the highest degree of danger/risky zone is that of the post award stage which calls for much of the interference by the courts.

In the United States, Calvin Coolidge signed the Federal Arbitration Act (FAA) into law in 1925, to be effective on January 1, 1926. (Wikipedia, 2014). “International commercial arbitration in Russia is governed by another statute: Law No. 5338-1 . . . It follows the UNCITRAL Model Law almost verbatim.” (Nikiforov, 2013). Both were “enacted to establish validity and enforcement of arbitration agreements”. (James, 2011). An arbitration agreement is then written to solve disputes later on. An arbitration agreement should include what law will govern the arbitration, where and when the arbitration will take

Conflict Management Arbitration and Mediation It is well recognized that the availability of prompt, effective and economical means of dispute resolution is an important element in the orderly growth and encouragement of international investment and trade. Increasingly, arbitration and mediation, instead of litigation in national courts, have become the preferred means of resolving international commercial disputes. Arbitration: Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to an arbitrator or to a tribunal of several arbitrators who give a decision on the dispute that is binding on the parties. In contrast to mediation, once the parties have freely agreed to submit a dispute to arbitration, a party cannot unilaterally withdraw from the arbitration. Expedited Arbitration: Expedited Arbitration is, as its name suggests, a form of arbitration in which certain modifications are introduced in order to ensure that the arbitration can be conducted and an award rendered in a shortened time frame and, consequently, at a reduced cost. To achieve those objectives, the modifications provide for a sole arbitrator (rather than a tribunal of several arbitrators), shortened time periods for each of the steps involved in the arbitration proceedings, and condensed hearings before the sole arbitrator. Mediation Followed, in the Absence of a Settlement, by Arbitration: This procedure combines, sequentially, both mediation and arbitration. Where the

The Supreme Court (SC) has held in a number of decisions that the ad idem intention of the parties to go to arbitration must not be uncertain but unequivocal. It was held in Jagdish Chandra case that the arbitration agreement must ad idem refer the disputes to a private tribunal must be in writing, wherein the determination would be made in an impartial manner and the decisions would bind the parties. Thus, so long as the parties’ intention to go for arbitration can be gathered from a written document and the above requirements are fulfilled, the arbitration agreement has been held to be valid.

Looking at the procedure’s that are in place for dispute resolutions, whether from the United Nations, or Arbitration Tribunals, I find there is a question of whether they are enough to settle disputes between two

National court involvement in international arbitration is a fact of life as prevalent as the weather. National courts become involved in arbitration for a whole host of reasons, but do so primarily because national laws are permissive and parties invite or encourage them to do so.

This arbitration process is preferred by many due to various reasons; the litigation in a court that is foreign is times very expensive ,time consuming and can lead to the development of adversarial relationships between the parties, the arbitration awards by the tribunal are recognized internationally for about 140 countries worldwide abide to the terms of Convention on Recognition and enforcement of Foreign Arbitral Awards of 1958 also known as the New York convention and the arbitration panel is composed of arbitrators who are chosen by the parties involved. The arbitration is also a highly confidential process with the arbitral awards issued being final and binding hence leaving no chance for appeals ( Bennett S 2002).

Meanwhile, it is from these disputes that arise from international business activities that business parties are eligible to come up with a way to which their disputes are resolved. This process of resolving disputes regarding international business transactions is thus referred to as international commercial arbitration. Hereby, disputes are settled down upon the agreement of the two parties by an arbitrator or mediator who is chosen by the two parties to make a decision that is meant to bind their activities. Consequently, this procedure ultimately helps business people solve their disputes without seeking court actions for litigations regarding their differences. Since the arbitrator who solves disputes between two

Among different issues that are sought by way of arbitration, issues related to International Commercial Transactions top the list. In International Commercial Arbitration, the parties are free to choose the law by which they want to be governed as well as the jurisdiction in which they want to take up the dispute. Now, the element of jurisdiction sometimes creates problems as the parties, in some cases, refuse to travel to a distant place because of some reason and suffer for not abiding the arbitration agreement. This element of