When someone’s considering whether to use Arbitration, one of the most common questions is:
Can the decision be appealed if I disagree with it?
… This is a great question to ask – and, when you’re picking a form of ADR to use, the most important distinction to understand is often the specifics of the outcome.
The short answer is that Arbitral Awards are final and legally binding.
It’s one of the key reasons why Arbitration is considered an effective alternative to court proceedings – it usually offers a legally binding decision with immediate effect. The Arbitration Act 1996 provides the legal framework governing arbitration in England, Wales and Northern Ireland.
However, there are limited circumstances in which the decision may be challenged, depending on the applicable law, the arbitration agreement, and the rules governing the scheme.
Read on to find out everything you need to know!
By the way, we also run an Arbitration scheme!
If you’ve hit a wall with a trader, Consumer Arbitration offers a fair, independent and accessible route to a resolution – approved by the Chartered Trading Standards Institute to settle disputes between consumers and Participating Member traders right across the UK.
Why are Arbitral Awards usually final?
Here’s the short answer:
Arbitration is designed to provide a quicker and more efficient way to resolve disputes, as opposed to going to court. As such, Arbitration schemes (such as our very own Consumer Arbitration!) are usually designed with legally binding decisions in mind.
Finality gives both disputing parties certainty, and helps avoid lengthy and costly legal proceedings to get the same result.
… And here’s the more technical answer:
Arbitration in England, Wales and Northern Ireland is primarily governed by the Arbitration Act 1996. The Act provides the legal framework for how arbitration operates, including how arbitral awards are made, enforced and, in limited circumstances, challenged.
Once an arbitrator has carefully considered the evidence, heard both sides, and issued a decision, that decision generally brings the dispute to a close.
For example, if you read our own After our Decision page, you’ll see that we directly cite the Arbitration Act 1996 as what makes our own Arbitral Awards legally binding!
… But our article doesn’t end here, so there’s clearly more to this. Right?
When can you challenge an Arbitral Award?
Although Arbitral Awards are generally intended to be legally binding, and it’s rare for them to be challenged, there may be exceptional situations where a court can be asked to review, or set aside an award.
These circumstances are usually very limited and may include:
- A serious procedural irregularity that affected the fairness of the process
- The Arbitrator exceeded the powers granted under the Arbitration Agreement
- Evidence of fraud or dishonesty
It’s important to note that simply disagreeing with the outcome is not a valid reason to challenge an Arbitral Award!
Another important point to remember is that, if you’re planning to challenge an Arbitral Award governed by the Arbitration Act 1996, in most cases you’ll need to bring your case to the Courts within 28 days of that Arbitral Award having been issued.
What if you believe a mistake has been made?
If you believe there has been a genuine error in the decision, you should first review the arbitration rules that apply to your case. Some arbitration schemes allow for the correction of minor clerical or administrative mistakes, such as typographical errors or calculation errors.
For example, at Consumer Arbitration, on our After Our Decision page, you’ll see that we allow for a 14-day correction window after issuing the Arbitral Award. This means that, if you believe we made a mistake, you can still ask our Arbitrator to review and correct this!
If your concern relates to the way the arbitration process itself was conducted, you may also wish to raise the matter through the relevant scheme’s complaints process, where available. This is separate from appealing the outcome itself.
What should you consider before challenging an Arbitral Award?
Before challenging an Arbitral Award, you should consider the following:
- Is there a recognised legal ground for challenging the award?
- What do the Arbitration scheme’s rules say about finality and review?
- Are there time limits that apply?
- Would the potential costs outweigh the benefit of further action?
Because the rules vary depending on the jurisdiction and the arbitration agreement, obtaining independent legal advice may be appropriate if you are considering challenging an Arbitral Award/Arbitration outcome.
I want to use Consumer Arbitration! How do I get started?
You can lodge your complaint with us in whichever way suits you – through our online portal, by post, or by phone:
> Start your complaint with Consumer Arbitration
> What to do before you come to us
Take a little time to read through our site so you understand the process and what’s required. If you have any questions, feel free to reach out to us – we’d be happy to help!
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