Business Arbitration Scheme
Businesses defending or considering bringing legal action outside the £10,000 Small Claims limit face court costs and legal fees, which as a rule of thumb can range from a third to 100% of the value of claim and take at least 6-12 months to get to Court.
If the outlay isn’t enough to put small and medium sized businesses off, even if they win, the chances are they’ll only recover 70% of their costs at best, leaving them caught between a rock and a hard place.
The Chartered Institute of Arbitrators has developed the Business Arbitration Scheme (BAS) as a quicker, cost effective alternative for resolving disputes with a value of between £5000 and £100,000 for a fixed fee of £1250 + VAT per party, with up to £1000 recoverable by the successful party.
With a legally binding decision by a sole Arbitrator within 90 days of appointment, the procedure is less formal and simpler than litigation allowing for parties to present their own case without the need for a solicitor or barrister.
Unlike public court hearings, arbitration is confidential and held in private although the decision is no less enforceable.
Businesses can include a Business Arbitration Scheme clause in their terms and conditions of contract, as an agreement of both parties to submit any dispute to arbitration or complete an application form, when a problem arises.
Arbitration has long been the standard form of dispute resolution in international commercial transactions, where the confidential nature affords parties protection of commercially sensitive information and of course reputations.
This along with the ability to “choose” arbitrators based upon their specific industry has been influential in the rise of arbitration as the method of choice for resolving contract disputes.
Suitable for all manner of goods, services and industries including construction, building work, manufacturing, cars, boats, glazing and conservatories. For further information contact Philip Harmer on 0333 700 7676 or email the CIArb using firstname.lastname@example.org