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21 June 2012 / Imran Benson
Issue: 7519 / Categories: Features , Procedure & practice , Arbitration , ADR
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In search of justice

Imran Benson questions the ability of arbitrations to provide access to justice

 

“Arbitration? It’s against my human rights!” If a person is contractually obliged to arbitrate disputes, but cannot afford an arbitration, should not his human rights override the contract? 

Many contracts say that any disputes between the parties should be resolved by arbitration. The advantages of arbitration are well known: speedy, secret and customised to the dispute. In international contracts, or in jurisdictions where the local judiciary is of doubtful quality, can provide easy access to independent, experienced and able tribunals. But this comes at a cost. 

Substantial fees

The fees of the arbitrator, who in England will often be an eminent silk, can quickly amount to many tens of thousands of pounds. An arbitration might require three arbitrators, which means tripled fees. Parties will usually be required to pay their share up front and this can be a substantial problem for a party of less than considerable means. It is not uncommon to find that
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