While international arbitration garners significant attention, domestic arbitration is equally important for resolving local disputes in Singapore. Governed by the Arbitration Act, domestic arbitration offers an alternative to court litigation for Singapore-based parties.
Benefits of Domestic Arbitration
Flexibility: Parties have the autonomy to design procedures suited to their needs.
Expert Arbitrators: Ability to appoint arbitrators with specific industry knowledge.
Finality: Limited grounds for appeal, ensuring that disputes are conclusively resolved.
Privacy: Proceedings are confidential, safeguarding business reputations.
Choosing Domestic Arbitration
Arbitration Agreement: Parties must have an arbitration clause in their contract or agree to arbitrate after a dispute arises.
Institutional vs. Ad Hoc: Parties can choose institutional arbitration (e.g., Singapore International Arbitration Centre) or conduct ad hoc arbitration.
Legal Framework
Arbitration Act: Applies to domestic arbitrations, providing a legal foundation and default rules.
Court Support: Singapore courts generally uphold arbitration agreements and awards, intervening minimally.
Considerations
Cost: While arbitration can be cost-effective, fees for arbitrators and administration may be higher than court fees.
Limited Appeal Rights: Grounds for setting aside an award are narrow, primarily focusing on procedural fairness.
Conclusion
Domestic arbitration in Singapore offers an effective means of dispute resolution for local businesses. By understanding its advantages and limitations, parties can make informed decisions that align with their interests.
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