Disputes are frequent and inevitable in both personal and business endeavours. In light of increasing court backlogs and the undesirability of protracted litigation, alternative dispute resolution mechanisms, such as mediation and arbitration, have emerged as viable alternatives to traditional litigation. These mechanisms, however, differ in process and outcome.<\/p>\n
Arbitration<\/strong><\/p>\n Governed by the Arbitration Act, arbitration involves the referral of a dispute to a neutral third party \u2013 an arbitrator \u2013 for resolution after an impartial assessment of the parties\u2019 evidence and submissions. In practice, arbitration is triggered by the inclusion of an arbitration clause in an agreement to resolve disputes through the appointment of a mutually agreed-upon accredited arbitrator or, if no agreement is reached, an arbitrator recommended by an accredited organisation, such as the Arbitration Foundation of Southern Africa. Crucially, the arbitrator\u2019s decision is final and binding on the parties. If the parties are dissatisfied with the arbitrator\u2019s finding, they cannot challenge it.<\/p>\n Often arbitration is preferred to traditional litigation for various reasons. First, the arbitrator has specialised legal expertise in the sphere of law relevant to the dispute. Second, in light of an overburdened judicial system, arbitration offers a speedier and more convenient pathway to resolving disputes. Third, an arbitrator\u2019s finding is private, which allows the parties to avoid the public disclosure of sensitive information and or reputational damage.<\/p>\n