Binding arbitration (by an independent expert)

What does binding arbitration entail?

The binding arbitration comes from an independent expert. The expert is selected based on background, experience, and one or more specific areas of expertise. He also possesses sufficient legal knowledge to formulate a legally sound advice. After accepting the assignment, the independent expert drafts a simple agreement. In this agreement, the conflicting parties authorize him to formulate the binding advice, and the ruling is binding for them.

Subsequently, the binding arbitrator consults with the conflicting parties, and if necessary, this can take place at the location, to obtain the best possible understanding of the facts, circumstances, and arguments. Hearing both sides and providing an opportunity for counterarguments is a guiding principle to arrive at a well-considered binding advice.

Reasons to choose binding arbitration

“When there are modest, straightforward (financial) interests involved, and only one expert is needed for the evaluation of the conflict, binding arbitration is an option. Binding arbitration is also the appropriate method when both conflicting parties value confidentiality and discreet handling of their conflict while also seeking a swift resolution.

The advantages of binding arbitration are:

• In the binding arbitration procedure, clients have the assurance that a solution will be reached within a short period of time.
• The costs are negotiable and relatively low.
• Confidentiality is possible, while a judicial procedure is public in nature and may lead to airing dirty laundry and/or experiencing loss of face and reputational damage.

Do you have a conflict and are you looking for a binding arbitrator? Or would you like to discuss the possibilities of binding arbitration? Feel free to contact us without obligation.