{"id":202351,"date":"2021-02-11T15:01:31","date_gmt":"2021-02-11T02:01:31","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=202351"},"modified":"2024-10-09T15:45:53","modified_gmt":"2024-10-09T02:45:53","slug":"arbitration-new-zealand","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/disputes-and-litigation\/arbitration-new-zealand\/","title":{"rendered":"What is Arbitration in New Zealand?"},"content":{"rendered":"\n<p><span style=\"font-weight: 400\">When dealing with other businesses, it is not uncommon for issues or disagreements to arise. To prepare for such situations, your business may wish to adopt a dispute resolution procedure. Arbitration is a popular dispute resolution process for commercial bodies. This article will outline:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">what arbitration is;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">what an arbitration agreement is and why your business should have one; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the typical process.<\/span><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">What is Arbitration?<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Arbitration is an <\/span><a href=\"https:\/\/legalvision.co.nz\/disputes-and-litigation\/what-is-alternative-dispute-resolution-in-new-zealand\/\"><span style=\"font-weight: 400\">alternative dispute resolution<\/span><\/a><span style=\"font-weight: 400\"> method. Here, the disputing parties agree to refer their conflict to an independent third party who will provide a final, binding resolution. This third party is known as the arbitral tribunal. An arbitral tribunal can be an individual arbitrator or a panel of arbitrators. The arbitral tribunal makes a binding and enforceable decision by the arbitration agreement that the parties entered into. The disputing parties contractually agree to accept the outcome, regardless of whether they consider it to be right.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">As a third party <\/span>decides the outcome of the conflict<span style=\"font-weight: 400\">, there are procedural similarities between arbitration and litigation, or going to court. These include that both procedures:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">involve legal representatives arguing on behalf of the disputing parties;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">can call witnesses and have them examined; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">employ the use of <\/span><a href=\"https:\/\/legalvision.com.au\/digital-documents-evidence\/\"><span style=\"font-weight: 400\">documentary evidence<\/span><\/a><span style=\"font-weight: 400\">.&nbsp;<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">However, arbitration offers far more flexibility than litigation:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><span style=\"font-weight: 400\">you can choose the procedural rules that you wish to adopt. Your ability to choose your own procedure also makes the process less formal than litigation;<\/span><\/li><li><span style=\"font-weight: 400\">you can elect your own arbitrator who has expertise in the matter that is in dispute. In contrast, you do not get to choose the judge that determines the outcome of your court case; and<\/span><\/li><li><span style=\"font-weight: 400\">the process tends to be more time and cost-effective than going to the High Court to settle your dispute.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">As arbitration is a flexible dispute resolution method, it can settle nearly all conflicts. The key requirement is that the conflicting parties have agreed to submit their dispute to arbitration. However, you c<\/span>annot use<span style=\"font-weight: 400\"> this process if your:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">conflict involves criminal offences; or&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">arbitration agreement is contrary to public policy.<\/span><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">What is an Arbitration Agreement?<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">An arbitration agreement is a contract that you enter into to submit your dispute to an arbitral tribunal. This agreement can be oral or a written document. You can enter into this agreement when your dispute arises, or in advance. An agreement to arbitrate a future conflict can be conveyed as a submission or an arbitration clause. This clause will be included in any contract your business enters into that creates a legal relationship with another business or party. By including an arbitration provision in your contracts, you are ensuring that your future disputes can be resolved in a manner that:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">you and the other party have agreed to;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">will assist in preserving your legal relationship; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">is more time and cost-effective than litigation.&nbsp;<\/span><\/li><\/ul>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal 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       } else {            triggerPostRender();        }    } );} );\n<\/script>\n<\/div>\n<\/div>\n<div id=\"content-next\"><!-- scroll anchor --><\/div>\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">The Arbitration Process<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">The arbitration process commences when you:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">or the other disputing party, request for your dispute to be referred to the arbitration procedure detailed in the arbitration clause of your contract; or<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">and the disputing party enter into an arbitration agreement to refer your dispute to an arbitral tribunal.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">You may also wish to enter into another agreement to appoint the arbitral tribunal who will resolve your dispute.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Before the Hearing<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Once you have appointed an arbitral tribunal, it is common practice to call a preliminary meeting. All of the disputing parties and their legal representatives or advisers should attend this meeting, either in person or over the phone. This meeting should:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">set a timeline of the proceedings, including a date for your hearing;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">confirm the key issues in dispute;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">clarify how you want these issues resolved. This clarification should involve specifying the rules and procedure that you wish for the arbitral tribunal to follow; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">finalise the costs of the arbitration.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">Shortly after the preliminary hearing, or in an agreed period, you (as the claimant) will usually submit a statement of claim to the other disputing party and the arbitral tribunal. This statement of claim must contain:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the key issues of the dispute;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">your side of the dispute;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the relevant law;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">any facts that support your claim; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the relief that you seek from the dispute.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">You should submit all relevant documents alongside this statement of claim.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Once you have submitted your statement of claim and the other party has responded, you will usually go through the process of discovery. Discovery is a procedure where you and the other party are required to provide one another with a list of the documents relevant to your dispute. You each have the opportunity to inspect these documents to assist in your case.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">The Hearing<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">The procedure for your hearing is determined by your arbitration agreement. Regardless of the procedure you choose, your hearing should be:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">fair;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">impartial; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">conducted by an arbitrator who complies with the rules of natural justice.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">As the claimant, you will usually begin the hearing. You will:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">present your opening submissions;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">call on any witnesses to support your case; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">allow the other party to cross-examine your witnesses.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">Throughout this process, you should aim to convey your case in a manner that will convince the arbitral tribunal to decide in your favour.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">The respondent will go through the same procedure. Throughout both presentations, the arbitrator may ask the witnesses questions to assist in their final decision.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">The Award<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Once the hearing has concluded, the arbitrator will consult all of the arguments and evidence presented. The arbitral tribunal will issue their final decision, or the award, in the period prescribed in the arbitration agreement or as soon as reasonably possible. This award must:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">be in writing;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">be signed by the arbitrator;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">clearly state the outcome of the dispute;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">articulate the reasons for this outcome, including the law used; and&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">deal with all of the questions raised in the arbitration.&nbsp;<\/span><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Disagreements are a natural part of commercial relationships. However, it is important to deal with these issues quickly and effectively to ensure that your relationship can continue. To assist in resolving future disputes, you may wish to include an arbitration clause in your contracts with other businesses. Through arbitration, your disputes can be resolved by a neutral third party through a procedure that you have agreed to. If you are interested in using arbitration to settle a dispute, contact <\/span><a href=\"https:\/\/legalvision.co.nz\/dispute-lawyers-lp\"><span style=\"font-weight: 400\">LegalVision\u2019s disputes lawyers<\/span><\/a><span style=\"font-weight: 400\"> on <\/span><span style=\"font-weight: 400\">0800 005 570 or complete the form on this page.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1613008494914\"><strong class=\"schema-faq-question\"><strong>What is arbitration?<\/strong><\/strong> <p class=\"schema-faq-answer\">Arbitration is an alternative dispute resolution process in which disputing parties agree to refer their conflict to an independent third party, the arbitrator, who will provide a final, binding resolution.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1613008482708\"><strong class=\"schema-faq-question\"><strong>What is an advantage of arbitration?<\/strong><\/strong> <p class=\"schema-faq-answer\">It offers far more flexibility than litigation when it comes to the procedure through which a dispute is settled.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1613008472885\"><strong class=\"schema-faq-question\"><strong>What is the arbitration agreement?<\/strong><\/strong> <p class=\"schema-faq-answer\">An arbitration agreement is the contract that you enter into to submit your dispute to an arbitral tribunal.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1613008465044\"><strong class=\"schema-faq-question\"><strong>What is an arbitration award?\u00a0\u00a0<\/strong><\/strong> <p class=\"schema-faq-answer\">The award refers to the final decision issued by the tribunal.\u00a0<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"ed19fd34f0\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/202351\" \/>            <input value=\"https:\/\/legalvision.co.nz\/disputes-and-litigation\/arbitration-new-zealand\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What is Arbitration in New Zealand?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>When dealing with other businesses, it is not uncommon for issues or disagreements to arise. To prepare for such situations, your business may wish to adopt a dispute resolution procedure. Arbitration is a popular dispute resolution process for commercial bodies. This article will outline: what arbitration is; what an arbitration agreement is and why your<a href=\"https:\/\/legalvision.co.nz\/disputes-and-litigation\/arbitration-new-zealand\/\">Continue reading <span class=\"sr-only\">&#8220;What is Arbitration in New Zealand?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13234,"featured_media":201828,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[9],"tags":[25,145,146,304,534],"class_list":["post-202351","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-disputes-and-litigation","tag-small-business","tag-disputes","tag-litigation","tag-arbitration","tag-arbitration-agreement"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is Arbitration in New Zealand? | LegalVision New Zealand<\/title>\n<meta name=\"description\" content=\"If you are in a dispute in New Zealand, you may need to engage in the arbitration process. 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