How Arbitration works

The 7 Simple Steps to FreightDisputes Arbitration:

 

Step 1 - Submission

Either party should complete the Freight-Dispute Arbitration Submission Form which includes the facility to select an Arbitrator (or an Arbitration Panel of 3).  Neither party is considered the Plaintiff or the Defendant and it makes no difference which party initiates the Arbitration.

Step 2 - Acceptance

Upon receipt of the Arbitration Submission Form, FreightDisputes will contact the other disputing party to confirm that they will accept Arbitration. If they accept, they will also have the facility to select an Arbitrator and/or an Arbitration Panel. If they don't accept, the Arbitration cannot proceed.

Step 3 - Fees

We will provide both parties with an Agreement to Arbitrate and an invoice for USD 250.00 (or USD 600.00 for an Arbitration Panel).  Payment can be made via Credit Card.  Note that the Agreement to Arbitrate includes provisions that by submitting to Arbitration both parties agree that the neither FreightDisputes nor the Arbitrator shall be subpoenaed by either party in any subsequent legal proceeding. Further, that FreightDisputes and Arbitrator shall not be liable for any act or omission in connection with any Arbitration.

Step 4 - Appointment of Arbitrators

Upon receipt of the signed Agreement to Arbitrate and receipt of funds, the selection of Arbitrator(s) will be confirmed.  The ultimate decision on the selection of Arbitrators will rest with FreightDisputes but will take into account (i) The choices of the disputing parties (ii) The availability of the Arbitrators and their acknowledgement that they have no real or perceived conflicts of interest and/or knowledge of either of the disputing parties through prior personal or business relationships.

 

Step 5 - Discovery

Each disputing party will be provided with a link to allow them to enter full details of their disputes.  Each party will have 10 days to provide such details along with any supporting evidence. On Day 10, these details will be shared with the other party and the Arbitrator(s). Every party, including the Arbitrator(s) will have an additional 10 days as a follow-up period to respond to the other party's submission and/or asking for additional information and/or clarification, supporting documentation, etc.  On Day 20, the "discovery" portion of the case is closed and no further communications or exchanges will be allowed and the Arbitrator(s) will start the decision-making procedures.

Step 6 - Decision

As soon as possible after Day 20, but no later than 20 days, the Arbitrator will consider and then publish a written decision accompanied by the arbitrator's reasons for the decision. In the case of a Panel, the majority decision will prevail.  The decision may order an action to be performed, money to be paid, or a combination of these remedies.  In addition, the Arbitrator has the discretion to assess the costs of the arbitration against the losing party, or to distribute the costs between the parties in whatever proportion he/she deems equitable.  Note that the Arbitrator's decision will be final and legally binding.  FreightDisputes will not accept any further communications that attempt to re-argue the case or that are based solely upon a disagreement or disappointment with the decision.

 

Step 7 - Enforcement of Decision/Certification of Decision

Should the winning party need to enforce the Arbitration Award, it is substantially easier to enforce in foreign courts than foreign court judgments especially of the other disputing party is located in a country that has subscribed to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (also known as the "New York Convention").  See www.uncitral.org/uncitral/en/uncitral_texts/arbitration/NYConvention_status.html for such member states.   The Convention provides that each country must "recognize [arbitral] awards as binding and enforce them in accordance with the rules of procedure of the territory where the award is relied on." This means the party only needs to supply the local court with an authenticated original or duly certified copy of the award and the original or a certified copy of the arbitration agreement in order to apply for enforcement.  FreightDisputes will provide the necessary documentation for a fee of USD 50.00

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