Arbitration and binding advice

Arbitration and binding advice

ReulingSchutte offers arbitration and binding advice. Several of our professionals have extensive backgrounds as judges or justices and act as arbitrators or binding advisors.

In arbitration and binding advice, the dispute is submitted to an arbitrator or a binding advisor, rather than being brought before a court. These forms of private dispute resolution offer several advantages compared to a judicial proceeding:

• The procedure and outcome can remain entirely confidential as desired.
• The arbitrator and binding advisor can make customized agreements with parties regarding the procedural order, such as the pace, the number of written rounds, and the hearing of parties.
• Parties can select the arbitrator or binding advisor based on their expertise.

Arbitration is extensively regulated by law and, for that reason, is more formal than binding advice. However, in practice, both forms often resemble each other. In both cases, the dispute is ultimately resolved: the arbitrator or binding advisor makes the final decision.

Parties can agree to arbitration or binding advice when they have a specific conflict. They can also prearrange it with a view to potential future disputes. Additionally, an arbitration or binding advice clause is frequently included in general terms and conditions or in the bylaws of a legal entity. Parties can choose a single arbitrator or binding advisor or opt for a panel of (usually three) arbitrators or binding advisors.

Settlement Arbitration

A special customized arrangement is settlement arbitration. In this case, parties choose to commence the arbitration or binding advice process with a session to explore a solution. These conversations are conducted by parties under the guidance of the arbitrator/binding advisor in one or more sessions. This can be done based on customized agreements before or after the exchange of documents. Just like in mediation, as much time as necessary can be taken for the discussions. If these discussions result in an amicable settlement, the procedure ends with a settlement. If the agreement does not succeed, the arbitrator/binding advisor will render a decision after the process is completed.