Arbitration is a way to resolve civil disputes, which is different from litigation. So is arbitration useful? How to apply for arbitration? Next, the editor will give you a brief introduction.
Arbitration refers to a dispute resolution system in which both parties to a dispute voluntarily submit the dispute to a third party for arbitration. It is important to note that the third party making the award should have a recognized status. It is generally an arbitral tribunal composed of arbitrators from non-judicial institutions. After hearing the dispute, it makes a ruling. The arbitration is final and the award takes effect immediately, that is, it becomes legally effective at the time the award is made. At the same time, our country has a special arbitration law that clearly stipulates arbitration matters. So arbitration is legally binding.
A major difference between arbitration and litigation is that both parties voluntarily choose arbitration to resolve disputes (except for labor arbitration). The composition of the arbitral tribunal and the hearing method are determined by the parties through negotiation, which fully reflects the voluntary nature of arbitration. Arbitration and litigation also differ in the speed with which disputes can be resolved. Because arbitration is final and the award takes effect once it is made, disputes between the parties can be resolved quickly, while litigation is handled through the second instance procedure. If one party appeals, it will take longer to resolve the dispute. As far as the arbitration institutions themselves are concerned, each arbitration institution is independent and free from interference.
When initiating arbitration, first of all, the parties to the dispute voluntarily submit the dispute to the arbitration tribunal for evaluation (except for labor arbitration). They need to reach a written agreement stating the personnel composition, selection of arbitration institutions and other arbitration-related matters. Then, write the application and prepare copies. The number of copies depends on the number of persons charged. The application should state the relevant basic information of the parties, such as name, address, contact information, etc. The arbitration request, facts and reasons should be stated, and corresponding evidence materials should be prepared. A lawyer can be entrusted for arbitration. If a lawyer is entrusted, a power of attorney must be submitted. Finally, submit the application and related materials to the arbitration institution.
The arbitration procedure is that the arbitration committee will first review the application submitted by the applicant and only accept it if it is deemed to meet the acceptance conditions. If it is decided to accept the application, a notice of acceptance will be sent to the applicant and a copy will be sent to the respondent. This period is five days, which is the time limit from receipt of application to notification. If the application has been accepted, the applicant must pay the arbitration fee within the specified time after receiving the notice (no fees are paid for labor arbitration). If the fee is not paid on time, the applicant shall be deemed to have withdrawn the arbitration application, and the respondent shall submit a statement of defense within the specified time.
The composition of the arbitral tribunal is agreed upon by both parties, which also has a certain time limit. Once the arbitral tribunal is formed, the arbitration can begin. During the arbitration, the parties shall not be absent without justifiable reasons, and the absent arbitral tribunal may make an award in absentia. Of course, after applying for arbitration or during the trial, both parties can also voluntarily reconcile. If an agreement is reached through settlement before trial, they can ask the tribunal to rule on the basis of the agreement. If there is a settlement during the trial, the arbitral tribunal shall preside over the mediation.
Finally, it should be reminded that if a dispute is resolved through arbitration and the parties are dissatisfied with the arbitration award, they cannot initiate arbitration or litigation on the same dispute. But if it is labor arbitration, it is possible. After all, the law applicable to labor arbitration is different from the law applicable to ordinary arbitration.