What Is Arbitration in Law: A Guide to Alternative Dispute Resolution

What is arbitration in law? It’s a powerful alternative dispute resolution (ADR) method that allows parties to resolve conflicts outside of traditional court proceedings. Arbitration provides a structured process for resolving disputes, offering advantages like flexibility, privacy, and a faster resolution compared to litigation. It’s often used in commercial contracts, employment disputes, and international trade disagreements, providing a tailored approach to resolving conflicts.

The arbitration process begins with an agreement to arbitrate, where parties agree to submit their dispute to an impartial third party, the arbitrator. The arbitrator, chosen by the parties or appointed by an institution, conducts hearings and makes a binding decision called an award. This process offers a more controlled and focused approach to resolving conflicts, offering a valuable alternative to traditional court proceedings.

Definition of Arbitration in Law

Arbitration is a method of alternative dispute resolution (ADR) where parties to a dispute agree to have their disagreement resolved by a neutral third party, known as an arbitrator. Unlike court proceedings, arbitration is a private process, meaning it is not conducted in a public forum.

Key Characteristics of Arbitration

Arbitration is a distinct method of ADR, setting it apart from other options like mediation or negotiation. Here are some of its key characteristics:

• Binding Agreement: The parties involved in arbitration agree to be bound by the arbitrator’s decision, which is legally enforceable.
• Neutrality: The arbitrator is an impartial third party with no vested interest in the outcome of the dispute. Their role is to fairly consider both sides and reach a decision based on the evidence presented.
• Flexibility: Arbitration offers greater flexibility than court proceedings in terms of procedures and timelines. Parties can tailor the process to their specific needs and preferences.
• Confidentiality: Arbitration proceedings are generally confidential, meaning the details of the dispute and the arbitrator’s decision are not made public.

Types of Disputes Resolved Through Arbitration

Arbitration is a versatile dispute resolution method that can be used in a wide range of situations. Some common types of disputes resolved through arbitration include:

• Commercial Contracts: Disputes arising from contracts for the sale of goods, services, or construction projects are frequently resolved through arbitration.
• Employment Disputes: Disputes related to employment contracts, such as wrongful termination, discrimination, or wage disputes, are often subject to arbitration agreements.
• International Trade Disputes: Disputes arising from international trade transactions, such as import/export contracts, are often resolved through arbitration due to its neutrality and enforceability in multiple jurisdictions.
• Intellectual Property Disputes: Disputes involving trademarks, patents, copyrights, and other intellectual property rights can be resolved through arbitration.
• Construction Disputes: Disputes arising from construction projects, such as delays, cost overruns, or defects, are often subject to arbitration agreements.

The Arbitration Process

The arbitration process is a structured and formalized method of resolving disputes outside of traditional court proceedings. It involves the parties agreeing to submit their dispute to an impartial third party, the arbitrator, for a binding decision. The process offers a more flexible and efficient alternative to litigation, allowing parties to tailor the process to their specific needs.

Steps in the Arbitration Process

The arbitration process typically involves several distinct steps, each with its own set of procedures and considerations. Here’s a breakdown of the key stages:

1. Agreement to Arbitrate: The foundation of any arbitration is the agreement to arbitrate. This agreement, often found in a contract, Artikels the parties’ commitment to resolving disputes through arbitration rather than litigation. The agreement typically specifies the scope of issues covered, the rules governing the process, and the selection of the arbitrator.
2. Initiation of Arbitration: Once a dispute arises, one party initiates the arbitration process by filing a demand for arbitration with the other party and the arbitration institution or organization overseeing the process. The demand for arbitration Artikels the nature of the dispute and the relief sought.
3. Selection of the Arbitrator: The parties may agree on the selection of the arbitrator, or the arbitration institution may appoint one based on the agreed-upon criteria. The arbitrator must be impartial and have expertise in the subject matter of the dispute.
4. Pre-Hearing Phase: This phase involves the exchange of information between the parties, including the submission of documents, briefs, and witness lists. The arbitrator may also schedule pre-hearing conferences to address procedural issues and facilitate settlement negotiations.
5. Hearing Phase: This is the core of the arbitration process, where both parties present their case to the arbitrator. The hearing typically involves witness testimony, document submissions, and oral arguments. The arbitrator has the authority to rule on procedural matters and evidence admissibility.
6. Post-Hearing Phase: After the hearing, the arbitrator will deliberate and issue a written decision, known as the arbitration award. The award is typically binding on the parties and can be enforced in court. The parties may have the opportunity to appeal the award under specific circumstances.

Role of the Arbitrator

The arbitrator plays a crucial role in the arbitration process, acting as an impartial decision-maker. Their responsibilities include:

• Selection: As mentioned earlier, the parties may agree on the selection of the arbitrator, or an arbitration institution may appoint one based on agreed-upon criteria. This ensures the arbitrator’s impartiality and expertise in the subject matter.
• Powers: The arbitrator has significant powers within the arbitration process, including the authority to rule on procedural matters, determine the admissibility of evidence, and issue binding decisions. These powers are typically Artikeld in the arbitration agreement.
• Responsibilities: The arbitrator’s primary responsibility is to conduct a fair and impartial hearing, ensuring that both parties have a reasonable opportunity to present their case. They must carefully consider the evidence presented, apply the relevant laws and rules, and issue a well-reasoned award.

Phases of the Arbitration Process

The arbitration process is divided into distinct phases, each with its own set of activities and procedures:

Pre-Hearing Phase

This phase involves the initial steps leading up to the formal hearing, including:

• Exchange of Information: The parties exchange relevant documents, briefs, and witness lists to prepare for the hearing. This allows for a more efficient and focused hearing.
• Discovery: Depending on the arbitration rules and agreement, parties may engage in discovery procedures to gather information from each other. This can involve interrogatories, requests for documents, and depositions.
• Pre-Hearing Conferences: The arbitrator may schedule pre-hearing conferences to address procedural issues, discuss settlement possibilities, and establish the hearing schedule.

Hearing Phase

This is the core of the arbitration process, where the parties present their cases to the arbitrator:

• Opening Statements: Both parties present opening statements outlining their arguments and the evidence they intend to present.
• Witness Testimony: Witnesses are called to testify and provide evidence relevant to the dispute. The arbitrator may question witnesses directly or allow the parties to do so.
• Document Submissions: Parties submit relevant documents as evidence to support their claims.
• Closing Arguments: Both parties present closing arguments summarizing their positions and urging the arbitrator to rule in their favor.

Post-Hearing Phase

This phase follows the hearing and concludes the arbitration process:

• Deliberation: The arbitrator carefully reviews the evidence presented and deliberates on the case.
• Arbitration Award: The arbitrator issues a written decision, known as the arbitration award, outlining the findings and the outcome of the dispute.
• Enforcement: The arbitration award is typically binding on the parties and can be enforced in court.

Advantages and Disadvantages of Arbitration

Arbitration offers a viable alternative to traditional litigation, presenting a distinct set of advantages and disadvantages. Understanding these nuances is crucial for parties considering this dispute resolution method.

Advantages of Arbitration

Arbitration offers several advantages over traditional litigation, making it an attractive option for resolving disputes in various contexts.

• Confidentiality: Arbitration proceedings are typically confidential, meaning that the details of the dispute and the outcome are not made public. This can be particularly beneficial for businesses that wish to avoid negative publicity or protect sensitive information.
• Flexibility: Arbitration offers greater flexibility in terms of procedure and scheduling. Parties can tailor the arbitration process to their specific needs, choosing the arbitrator, the location of the hearing, and the rules governing the proceedings. This flexibility can be advantageous for parties with complex or time-sensitive disputes.
• Cost-effectiveness: Arbitration can be more cost-effective than traditional litigation, especially for complex or lengthy disputes. The streamlined process and reduced discovery can significantly reduce legal fees and other expenses.
• Expertise: Parties can choose an arbitrator with specialized expertise in the subject matter of the dispute. This can lead to a more informed and efficient resolution, as the arbitrator will have a deeper understanding of the issues at hand.
• Speed: Arbitration proceedings are generally faster than traditional litigation. This can be particularly important for businesses that need to resolve disputes quickly to avoid disruption to their operations.
• Finality: Arbitration awards are generally final and binding, meaning that they cannot be appealed to a higher court. This can provide certainty and predictability for parties involved in the dispute.

Disadvantages of Arbitration

While arbitration offers several advantages, it also has some potential drawbacks that parties should consider.

• Limited Discovery: Arbitration typically involves a more limited scope of discovery than traditional litigation. This can make it more difficult for parties to gather evidence and prepare their case.
• Finality of the Award: Arbitration awards are generally final and binding, meaning that parties have limited recourse if they are dissatisfied with the outcome. This can be a disadvantage if the arbitrator makes a significant error or if the parties believe that the award is unfair.
• Cost Factor: While arbitration can be more cost-effective than traditional litigation in some cases, it can also be expensive, especially for complex disputes. The fees for arbitrators and other experts can add up, and parties may still need to hire lawyers to represent them.
• Lack of Precedent: Arbitration decisions are not typically published and do not create legal precedent. This can make it difficult to predict how an arbitrator will rule in a particular case, as there is no body of existing case law to draw upon.

Comparison of Arbitration and Litigation

Feature	Arbitration	Litigation
Procedure	Flexible and tailored to the parties’ needs.	Formal and governed by established rules of procedure.
Timeframe	Generally faster than litigation.	Can be lengthy and drawn-out, especially for complex cases.
Cost	Can be more cost-effective, but also potentially expensive depending on the complexity of the dispute.	Often more expensive due to higher legal fees and court costs.
Discovery	Limited scope of discovery.	Extensive discovery process, including depositions, interrogatories, and document requests.
Finality	Awards are generally final and binding.	Decisions can be appealed to higher courts.
Publicity	Confidential proceedings.	Public proceedings, with decisions and records accessible to the public.

Types of Arbitration Agreements: What Is Arbitration In Law

Arbitration agreements are contracts that establish the framework for resolving disputes through arbitration. They are essential components of the arbitration process, outlining the terms and conditions under which disputes will be settled. These agreements can be classified into different types, each with its own specific characteristics and implications.

Binding Arbitration Agreements

Binding arbitration agreements are the most common type of arbitration agreement. They are legally enforceable contracts where both parties agree to accept the arbitrator’s decision as final and binding. This means that the parties waive their right to appeal the arbitrator’s decision in a court of law. The decision of the arbitrator is legally binding on both parties and is considered a final resolution of the dispute.

Non-Binding Arbitration Agreements, What is arbitration in law

Non-binding arbitration agreements are less common than binding agreements. They are typically used in situations where the parties want to explore a resolution through arbitration but do not want to be bound by the arbitrator’s decision. The arbitrator’s decision in a non-binding arbitration agreement is not legally enforceable and can be appealed to a court of law. The decision of the arbitrator is not legally binding, and the parties can choose to accept or reject it.

Elements of a Valid Arbitration Agreement

To be legally valid, an arbitration agreement must contain certain essential elements. These elements ensure that the agreement is clear, unambiguous, and enforceable.

• Scope of the Agreement: The agreement should clearly define the scope of disputes that will be subject to arbitration. This includes specifying the types of claims, the parties involved, and the time period covered by the agreement.
• Selection Process for the Arbitrator: The agreement should Artikel the process for selecting the arbitrator, including the method of appointment, qualifications, and any specific requirements.
• Applicable Rules: The agreement should specify the rules that will govern the arbitration process. These rules can be pre-existing rules, such as the American Arbitration Association (AAA) rules, or custom-made rules agreed upon by the parties.

Common Clauses in Arbitration Agreements

Arbitration agreements typically contain several common clauses that address various aspects of the arbitration process.

• Arbitration Process: This clause Artikels the steps involved in the arbitration process, including the procedures for filing claims, discovery, hearings, and the issuance of the award.
• Governing Law: This clause specifies the law that will govern the arbitration process and the interpretation of the arbitration agreement. This can be the law of a particular state, federal law, or international law.
• Dispute Resolution Mechanism: This clause defines the mechanism for resolving disputes that arise during the arbitration process, such as disagreements about the arbitrator’s authority or the interpretation of the agreement.

The Arbitrator’s Role and Responsibilities

The arbitrator plays a pivotal role in the arbitration process, acting as a neutral third party to resolve disputes between parties. Their responsibilities extend beyond simply hearing arguments and making a decision; they encompass a range of crucial tasks, including ensuring fairness and impartiality throughout the proceedings.

Neutrality and Impartiality

Neutrality and impartiality are fundamental principles guiding the arbitrator’s decision-making process. They must remain unbiased, avoiding any potential conflicts of interest that could influence their judgment. The arbitrator’s role is to objectively evaluate the evidence presented by both parties and apply the relevant legal principles to reach a fair and just decision.

Selection of the Arbitrator

The process of selecting an arbitrator can vary depending on the type of arbitration agreement. In some cases, the parties may agree on a specific arbitrator beforehand. Alternatively, they may choose to use an arbitration institution, such as the American Arbitration Association (AAA) or the International Chamber of Commerce (ICC), to appoint an arbitrator. These institutions maintain lists of qualified arbitrators with expertise in various fields.

• Parties’ Right to Challenge: Both parties have the right to challenge the appointment of an arbitrator if they believe the arbitrator is not neutral or impartial. This challenge must be based on reasonable grounds, such as a demonstrated bias or a conflict of interest. The arbitration institution or the parties themselves, depending on the agreement, will then decide whether to uphold the challenge and appoint a new arbitrator.

Enforcement of Arbitration Awards

Arbitration awards are generally considered final and binding, meaning that they are legally enforceable. However, there are situations where an award may be challenged or overturned. This section will discuss the enforceability of arbitration awards under domestic and international law, the procedures for enforcing an award, and the circumstances under which an award may be challenged.

Enforcement of Arbitration Awards under Domestic Law

Domestic courts typically have the authority to enforce arbitration awards. The process for enforcing an award typically involves the winning party filing a motion with the court to confirm the award. The court will then review the award to ensure that it is valid and binding. If the court finds that the award is valid, it will issue an order confirming the award and making it enforceable.

Enforcement of Arbitration Awards under International Law

The enforcement of arbitration awards in international disputes is governed by the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. The New York Convention is an international treaty that has been ratified by over 160 countries. The Convention provides a framework for the recognition and enforcement of arbitration awards made in one country in other signatory countries.

The New York Convention establishes a number of grounds for refusing to enforce an award, including:

• The arbitration agreement was not valid under the law governing it.
• The party against whom the award is invoked was not given proper notice of the arbitration proceedings or was unable to present its case.
• The award deals with a dispute that is not capable of settlement by arbitration under the law governing the arbitration agreement.
• The award is contrary to the public policy of the enforcing country.

Challenging or Overturning an Arbitration Award

An arbitration award may be challenged or overturned in a number of situations. Some common grounds for challenging an award include:

• Fraud or Corruption: If the award was obtained through fraud or corruption, it may be overturned. For example, if one party bribed the arbitrator or presented false evidence, the award may be challenged.
• Violation of Due Process: If the arbitration process was conducted in a way that violated the parties’ due process rights, the award may be overturned. For example, if one party was not given an adequate opportunity to present its case, the award may be challenged.
• Arbitrator Bias: If the arbitrator was biased in favor of one party, the award may be overturned. For example, if the arbitrator had a financial interest in the outcome of the arbitration, the award may be challenged.
• Exceeding the Scope of the Arbitration Agreement: If the arbitrator made a decision that was outside the scope of the arbitration agreement, the award may be challenged. For example, if the agreement only covered a specific issue, but the arbitrator ruled on a broader issue, the award may be challenged.

Procedures for Enforcing an Arbitration Award

The procedures for enforcing an arbitration award vary depending on the jurisdiction. However, the general process typically involves the following steps:

1. Filing a Motion to Confirm the Award: The winning party must file a motion with the court to confirm the award. This motion typically includes a copy of the arbitration award and evidence that the award is valid and binding.
2. Notice to the Other Party: The court will then issue notice to the losing party, informing them of the motion to confirm the award.
3. Hearing or Trial: The court may hold a hearing or trial to determine whether the award should be confirmed. At this hearing, the parties may present evidence and arguments in support of their positions.
4. Court Order: If the court finds that the award is valid, it will issue an order confirming the award and making it enforceable.

Arbitration in Different Legal Systems

Arbitration, as a method of dispute resolution, is widely practiced across various legal systems. While the fundamental principles of arbitration remain consistent, significant differences exist in the procedures, rules, and legal frameworks governing arbitration in different jurisdictions. This section explores how arbitration practices vary in common law, civil law, and Islamic law systems, highlighting the key distinctions and the impact of international conventions on the recognition and enforcement of arbitration awards.

Arbitration in Common Law Systems

Common law systems, prevalent in countries like the United States, England, and Canada, rely heavily on precedent and judicial decisions. In these systems, arbitration is generally viewed as a contractual process, with the parties’ agreement defining the scope and nature of the arbitration.

• Arbitration Agreements: Arbitration agreements in common law systems are typically governed by statutes like the United States Arbitration Act (USAA) and the English Arbitration Act 1996. These statutes provide a framework for enforcing arbitration agreements and ensuring their validity.
• Procedural Flexibility: Common law arbitration offers greater flexibility in procedural matters. Parties can tailor the arbitration process to suit their specific needs, including the choice of arbitrator, the rules of evidence, and the discovery process.
• Judicial Review: While courts generally respect the arbitrator’s decision, they may review the award for certain grounds, such as exceeding the scope of the arbitration agreement, procedural irregularities, or a manifest disregard for the law.

Arbitration in Civil Law Systems

Civil law systems, prevalent in countries like France, Germany, and Italy, are based on codified laws and legal principles. In these systems, arbitration is viewed as a quasi-judicial process, with a strong emphasis on procedural formality and the application of legal principles.

• Codified Rules: Civil law systems typically have comprehensive codes and regulations governing arbitration, such as the French Code of Civil Procedure and the German Arbitration Act. These codes provide detailed rules on the appointment of arbitrators, the conduct of proceedings, and the enforcement of awards.
• Judicial Involvement: Courts play a more active role in civil law arbitration. They may be involved in the appointment of arbitrators, the supervision of the proceedings, and the enforcement of awards.
• Limited Judicial Review: Judicial review of arbitration awards in civil law systems is generally limited to specific grounds, such as procedural irregularities or a violation of public policy.

Arbitration in Islamic Law Systems

Islamic law systems, based on the Quran and Sunnah, have their own unique approach to dispute resolution. Arbitration, known as *tahkim*, is a recognized and encouraged method of resolving disputes in Islamic law.

• Shariah Compliance: Arbitration in Islamic law systems must comply with the principles of Shariah, including fairness, justice, and equity.
• Role of Arbitrators: Arbitrators in Islamic law are expected to be knowledgeable in Islamic law and to base their decisions on Shariah principles.
• Enforcement of Awards: Arbitration awards in Islamic law systems are generally enforceable in courts, subject to compliance with Shariah principles.

Impact of International Conventions

International conventions like the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards have played a crucial role in promoting the recognition and enforcement of arbitration awards across different countries. The New York Convention, ratified by over 160 countries, establishes a framework for the enforcement of arbitration awards in signatory states, regardless of the legal system.

• Reciprocal Enforcement: The New York Convention promotes reciprocal enforcement of arbitration awards, ensuring that awards rendered in one signatory country are enforceable in other signatory countries.
• Simplified Enforcement: The convention simplifies the process of enforcing arbitration awards by limiting the grounds for refusing enforcement to a few specific exceptions.
• Increased Predictability: The New York Convention contributes to the predictability and certainty of arbitration, encouraging parties to choose arbitration as a means of dispute resolution.

The Future of Arbitration

Arbitration is a dynamic field that is constantly evolving to meet the changing needs of businesses and individuals. Several emerging trends are shaping the future of arbitration, driven by technological advancements, globalization, and a growing demand for efficient and accessible dispute resolution mechanisms.

Technological Advancements in Arbitration

The increasing use of technology in arbitration proceedings is revolutionizing the way disputes are resolved. This trend is driven by several factors, including the need for greater efficiency, cost-effectiveness, and accessibility.

• Online Dispute Resolution (ODR): ODR platforms allow parties to resolve disputes online, often through automated processes, reducing the time and cost associated with traditional arbitration. These platforms can handle various types of disputes, from small claims to complex commercial matters. For example, the International Chamber of Commerce (ICC) has launched its own ODR platform, ICC International Centre for ADR, to provide a neutral and efficient platform for resolving disputes online.
• Virtual Hearings: The use of video conferencing and other technologies allows parties to participate in arbitration hearings remotely, regardless of their geographical location. This is particularly beneficial for international disputes, as it reduces travel costs and time. For example, the American Arbitration Association (AAA) offers virtual hearings for its arbitration proceedings, allowing parties to participate from anywhere in the world.
• E-discovery and Document Management: Technology plays a crucial role in managing the vast amounts of data generated in complex arbitration cases. E-discovery tools help parties efficiently search, review, and produce relevant documents, while document management systems ensure secure and organized storage and access to information. This streamlines the process, reduces costs, and ensures greater transparency.

Increased Use of Arbitration in International Commerce

The globalized economy has led to a surge in international trade and investment, resulting in an increased demand for effective dispute resolution mechanisms. Arbitration is well-suited for resolving international disputes due to its neutrality, flexibility, and enforceability.

• Growing Importance of International Arbitration: Arbitration provides a neutral forum for resolving disputes between parties from different jurisdictions, avoiding the complexities and potential bias of national court systems. This is particularly important for international transactions involving different legal systems and cultures.
• Development of International Arbitration Institutions: Organizations like the ICC, the London Court of International Arbitration (LCIA), and the Singapore International Arbitration Centre (SIAC) have established robust rules and procedures for international arbitration, ensuring consistency and predictability for parties. These institutions provide a framework for conducting international arbitration proceedings efficiently and fairly.
• Enforceability of Arbitration Awards: The New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958) is a key international treaty that ensures the enforceability of arbitration awards in over 160 countries. This provides parties with certainty that an arbitration award will be recognized and enforced in other jurisdictions, reducing the risk of non-compliance.

Challenges and Opportunities in Arbitration

While arbitration offers numerous advantages, it faces certain challenges that require attention to ensure its continued growth and effectiveness.

• Transparency and Public Accountability: One challenge is the perception that arbitration lacks transparency compared to court proceedings. This can be addressed by promoting greater disclosure of arbitration awards and the reasoning behind them. Initiatives like the ICC’s “Arbitration Transparency Initiative” aim to increase transparency in international arbitration by encouraging the publication of awards with redacted confidential information.
• Efficiency and Cost-Effectiveness: Arbitration can sometimes be expensive and time-consuming, particularly in complex cases. There is a need to streamline procedures and adopt technologies to reduce costs and improve efficiency. For example, using online platforms for case management and communication can significantly reduce administrative burdens and delays.
• Access to Justice: Arbitration can be inaccessible to individuals and small businesses due to its costs. Efforts to promote access to justice in arbitration include developing alternative dispute resolution (ADR) mechanisms, such as mediation and early neutral evaluation, and creating pro bono arbitration programs to assist those with limited resources.

Future Directions in Arbitration

• Development of New Rules and Procedures: Arbitration institutions are constantly refining their rules and procedures to address emerging trends and challenges. This includes incorporating technological advancements, promoting transparency, and enhancing efficiency. For example, the AAA has introduced new rules for online arbitration, allowing parties to conduct proceedings virtually.
• Increased Use of Technology: The use of technology in arbitration is expected to continue to grow, with the development of new tools and platforms to streamline processes and improve accessibility. This includes AI-powered tools for legal research, document review, and case management, as well as virtual reality (VR) and augmented reality (AR) technologies for immersive and interactive hearings.
• Focus on Sustainability: There is a growing emphasis on sustainability in arbitration, with institutions and practitioners seeking to minimize their environmental impact. This includes using paperless processes, reducing travel, and promoting environmentally friendly practices.

Final Thoughts

Arbitration stands as a robust alternative to traditional litigation, offering a structured and tailored approach to resolving disputes. With its advantages of flexibility, privacy, and faster resolution, it provides a compelling option for resolving a wide range of conflicts, from commercial contracts to international trade disputes. As arbitration continues to evolve, embracing new technologies and addressing emerging challenges, it remains a valuable tool for parties seeking a more efficient and effective way to resolve their differences.

Helpful Answers

How does arbitration differ from mediation?

While both are ADR methods, mediation aims for a mutually agreeable solution, while arbitration results in a binding decision by the arbitrator.

Is arbitration always binding?

Arbitration agreements can be binding or non-binding. Binding agreements require parties to abide by the arbitrator’s decision, while non-binding agreements allow parties to pursue litigation if they disagree with the award.

What are the costs associated with arbitration?

Arbitration costs typically include arbitrator fees, administrative fees, and legal fees. While often lower than litigation, costs can vary depending on the complexity of the dispute and the chosen arbitration institution.