Please note that the responses set out below are of a general nature and should not be relied on in the absence of specific legal advice.
What is arbitration in NZ?
Arbitration is an agreed process between parties in dispute for one or more arbitrators appointed by them or by default to determine a dispute between them.
How is a dispute referred to arbitration?
In order to arbitrate a dispute there must also be a binding agreement between the parties to either submit all or certain disputes between them to arbitration. It is not necessary for an arbitration agreement to be in writing unless one of the parties is a “consumer” in which case the Arbitration Act 1996 sets out specific requirements before such an arbitration agreement is enforceable.
Unless otherwise agreed, an arbitration is commenced when one party gives notice to the other party requesting that the dispute or disputes between them be referred to arbitration. In general, a party is not entitled to issue proceedings in a Court where there is a binding agreement to arbitrate the particular dispute and the other party may apply to the Court to stay any such proceedings.
What are the advantages of arbitration?
The parties have a reasonable amount of autonomy to determine the particular procedure to govern the arbitration and timing for determining the dispute. The arbitration is confidential to the parties and the hearing is held in private.
What are the disadvantages of arbitration?
The parties have to meet the cost of the arbitrator.
There is no ability to join other parties to the arbitration unless they are also parties to the arbitration agreement.
What procedure is used by the aribtrator?
The rules relating to the conduct of the arbitration are governed by the Arbitration Act 1996 except where the Act allows the parties to agree to vary its terms.
Arbitration – Peter Davey, Auckland Barrister | Arbitration in Auckland, NZ