Role of Judiciary-Research Paper in arbitration

Embed Size (px)

DESCRIPTION

Arbitration

Citation preview

IntroductionDispute resolution outside of courts is not new. Societies world-over have long used non-judicial, indigenous methods to resolve conflicts. What is new is the extensive promotion and proliferation of ADR models, wider use of court-connected Alternative Dispute Resolution, and the increasing use of Alternative Dispute Resolution as a tool to realize goals broader than the settlement of specific disputes. In the 1980s, demand for ADR in the commercial sector began to grow as part of an effort to find more efficient and effective alternatives to litigation. Since this time, the use of private arbitration, mediation and other forms of ADR in the business setting has risen dramatically, accompanied by an explosion in the number of private firms offering ADR services. Internationally, the ADR movement has also taken off in both developed and developing countries. ADR models may be straight-forward imports of processes found in the United States or hybrid experiments mixing ADR models with elements of traditional dispute resolution. ADR processes are being implemented to meet a wide range of social, legal, commercial, and political goals.What is ADR?

ADR is abbreviation for Alternative Dispute Resolution.Sometimes,it is also called as Appropriate Dispute Resolution.ADR refers to all the methods of resolving disputes/conflicts which are alternatives for litigation in the courts.ADR process are decision making process to resolve disputes/conflicts that do not to involve litigation or violence.ADR includes a variety of process through which litigants or potential litigants may resolve their disputes.Its focuses on effective communication and negotiation. ADR includes Arbitration, Mediation, Conciliation, Negotiation, Expert Determination, Early Neutral Evaluation by a third person, Mini-trail, Dispute Resolution Boarded. The approach of Judges, lawyers and parties throughout the world is changing towards adoption of ADR instead of court litigation. Arbitral institutions provide ADR services for quicker; less costly and consensual resolution of civil disputes outside the crowded court system.ADR provides creative option to the parties to resolve the disputes that are not available in traditional dispute resolution forums. It promotes together to solve the real concerns underlying the conflicts by focusing on the parties real interest instead of their position and claims. Situation where ADR is recommended

(i) Parties want to control the outcome of the dispute.

(ii) Parties want to resolve the dispute at the earliest.(iii) Parties want to preserve their relationship.

(iv) Parties want confidentiality or privacy.(v) Parties want to end their relationship without undue stress.

(vi) Parties have multiple issues in dispute.

(vii) Parties want to save money.

(viii) Parties have miscommunication and lack of respect for each other. Part IIADRs ConceptsAlternative Dispute Resolution uses different concept to resolve out the disputes/conflicts.ADR has generally many form to resolve the disputes but we will mainly emphasize on four different and widely used concepts i.e. arbitration, conciliation, mediation and negotiation.ArbitrationArbitration is an alternative way to resolve dispute through court-litigation, Arbitration is a recognized private legal procedure used to resolve dispute between two or more parties. Arbitration proceedings are administered and managed by a knowledgeable, independent and impartial third party. The parties to a dispute present their pleadings, evidence and arguments to the Arbitrator who decides the case and resolve the dispute. Where two or more persons agree that a dispute or potential dispute between them shall be decided in a legally binding way by one or more impartial persons in a judicial manner, that is upon evidence put before him or them, the agreement is called Arbitration agreement or submission to Arbitration. When, after a dispute has arisen, it is put before such persons or persons for decision, the procedure is called arbitration, and the decision when made is called award. Arbitration and Alternative Dispute Resolution are alternative options to litigation. Though included in the generic meaning of the term alternative dispute resolution arbitration is usually not classed as an ADR procedure. Unlike ADR outcomes an arbitration award is final and binding. The dispute is determined in private with final and binding effect by the impartial third person/persons acting in a judicial manner rather than by a court of competent jurisdiction.

An arbitral award is at par with a judgment of the court as recognized by the supreme court in the case of Ras Pal Gazi Construction Company Ltd vs. FCDA.In that case the Hon. Justice Katsina-Alu pronounced thus:- Arbitration proceedings as I have already shown

are not the same things as negotiations for settlement out of court. An award made, pursuant to arbitration proceedings constitute the final judgment on all matters referred to the arbitrator. It has a binding effect and it shall upon application in writing to the

Court be enforceable by the courtI must say

nowhere in the Act is the High Court given the power

to convert an arbitration award into its own judgment.

See Commerce Assurance Limited vs. Alhaji Buraimoh Alli

(Supra) what this means simply is this: An Award is on

par with the judgment of the court.

ConciliationConciliation is a process in which third party assists the parties to resolve their dispute by agreement. A conciliator may do this by expressing an opinion about the merits of the dispute to help the parties to reach a settlement. Conciliation is a compromise settlement with assistance of a conciliator. Conciliation is a voluntary and non-binding process in comparison to Arbitration and litigation. Any party may terminate conciliation proceedings at any time even without giving any reason. The important difference is that the parties control the process and the outcome of the dispute, which is not the case in Arbitration as well as litigation. Conciliation is a consensual process where as litigation and Arbitration solemnly urge the parties of amicable reconciliation and have no control on the outcome of the dispute of the process. Conciliation can be used in almost all contentious matters that are capable of being resolved under law by agreement between parties. Conciliation can be resorted to in civil disputes, in particular, commercial, industrial and family disputes. Conciliation is quite successful in disputes related to banking, contract performance and interpretations, construction contracts, intellectual property rights, insurance coverage, joint ventures, real estate, partnership differences, personal injury, product liability, professional liability etc. Conciliation can be resorted to at any time even while a case is pending in the court of law. Settlement through conciliation depends on the nature of the dispute. There are some advantages of Conciliation such as the disputes can be settled within a few hours or a few days if the parties are willing to settle. Conciliation is the need of the day when a large number of cases are pending in courts and it can be applied in most of the cases without risking the fairness and finality of any settlement so arrived at. It is a mode in which justice is hurried but it is not buried. Mahatma Gandhi was an ADR lawyer who had conducted private compromises in hundreds of cases. He has recorded in his autography that the both the parties were happy over the result and both rose in the public estimation.

.MediationThe failure of regular methods of dispute resolution had led to the search of alternative methods of conflicts resolution. One of the methods is handling human relations in a responsive and positive manner for the good of the people involved and for the betterment of the community.

DK Sampath in Mediation states the context of conflicting social behavior has to be appreciated and mediation has to be seen as a part of program of empowerment of the poor which again is part of the plenary legal aid ideology. Referring to half hidden aspects of Indian Social Justice, Krishna Iyer says: It may sound cynical to say that the judiciary as a class, the bar as a profession, the Government as an instrument and the political echelons as power-wielders are still half-informed about the plenary legal aid ideology and half afraid of legal aid potential and half hostile to radical legal, services program.

Mediation is essentially a search, for a solution, by the promises to the dispute, themselves, under the guidance of a third party. Mediation is a process, facilitation, an empowerment. The basic underlying motive of mediation is to provide the parties with an opportunity to negotiate, converse and explore options aided by a neutral third party, the mediator, to exhaustively determine if a settlement is possible. The common factor of negotiation and mediation is that both are based on consent of the parties.NegotiationNegotiation is primarily a common mean of securing ones expectation from others. It is form of communication designed to reach an agreement when two or more parties have certain interests that are shared and certain others that are opposed.Ginny Pearson Bames says negotiation is a resolution of a disagreement using and takes within the context of a particular relationship. It involves sharing ideas and information and seeking a mutually acceptable outcome.

The Pepperdine University of USA has developed an explanatory definition for negotiation:

Negotiation is a communication process used to put deals together or resolve conflicts. It is a voluntary, non-binding process in which the parties control the outcome as well as the procedures by which they will make an agreement. Because most parties place very few limitations on the negotiation process, it allows for a wide range of possible solutions maximizing the possibility of joint gains.

M Anstey explains core elements of negotiation as follows:

a) A verbal interactive process

b) Involving two or more parties

c) Who are seeking to reach agreement

d) Over a problem or conflict of interest between them and

e) in which they seek, as far as possible, to preserve their interests, but to adjust their views and positions in the joint effort to achieve an agreement.

PART-III The Concept of ubi jus ibi remidiumIn our paper we have emphasized on the legal maxim Ubi jus ibi remidium because this maxim rightly laid down the foundation of legal system in every human society. It means whenever any wrong is done to a person, he has the right to approach the court of law. This legal pattern of resolving dispute has resulted in abundance of pending case, which rightly justifies the clich Justice delayed is Justice denied. The legal proceedings in a court of law get stretched down the years consuming oodles of money and which ultimately leads to disruption in business and career.

There interminable and complex court procedure have prospectus Jurist and legal personalities to search for alternate to conventional court system. The search was a great success with the discovery of alternate forum known Alternate Dispute Resolution which commonly called by its generic acronym ADR. The term ubi jus ibi remedium is a Latin legal maxim which means where there is a right, there is a remedy. The basic principle contemplates in the maxim is that, when a person right is violated, the victim will have an equitable remedy under law. The maxim also states that the person whose right is being infringed has a right to enforce the infringed right through any action before a court. All law courts and also guides with same principle of ubi jus ibi remedium. Right to remedy has been recognizes historically as a fundamental right but that it should appropriately be considers a fundamental interest under the law. Remedies perform two critical functions in the law: they define abstract rights and enforce otherwise intangible rights. Rights standing alone are simply expression of social values. It is the remedy that defines the right making the value real and tangible by providing specificity and awareness to otherwise abstract guarantees. PART-IV

ADR AT LAW AND COMMERCIAL SECTORS BOTH AT NATIONAL AND INTERNATIONAL LEVELInternational and National Contrasted

International Arbitration takes place within a complex and vitally important international legal framework. Contemporary international conventions, national arbitration legislation, and institutional arbitration rules provide a specialized and highly supportive enforcement regime for most international commercial arbitrations and international investment arbitrations. A significantly less detailed legal framework exists for interstate arbitrations, although international law instruments provide a workable enforcement regime even in this context.

The international legal regime for international commercial and investment arbitration have been established, and progressively refined, with the express goal of facilitating international trade and investment by providing a stable, predictable, and effective legal framework in which the commercial activities may be conducted:

Enforcement of international arbitral agreement promotes the smooth flow of international transactions by removing the threats and incertainty of time-consuming and expensive litigation. The term international is used to mark the difference between arbitrations which are purely national or domestic and those which in some way transcend national boundaries and so are international or terminology adopted by Judge Jessup, transnational. It had been said that every Arbitration is a national arbitration, in that it must be held at a given place and is accordingly subject to the national law of that place.In a narrow sense, it is correct. If an international arbitration is held in Brussels, the place of the arbitration will be Brussels and the tribunals award will be Belgian award. But in practice it is usual to distinguish between arbitration which are purely national or domestic and those which are international. There are good legal and practical reasons for this. The procedure in any arbitration is regulated by law, that law is normally the law of place of arbitration i.e. the law of the place of the arbitration. The parties to a domestic arbitration usually are private individuals. This means that an element of consumer protection will almost certainly form part of the law governing domestic arbitrations.

PART-V

Role of Judiciary

In this part the authors have emphasized on the role of judiciary in Alternative Dispute Resolution at five different countries.Bangladesh

ADR in Bangladesh: Court Annexed Judicial Settlement

In June 2000, formalized ADR was introduced in Bangladesh by means of Court Annexed Judicial Settlement Pilot Prospects, in an effort to decrease delays, expenses and the frustration of litigants laboring through traditional trial process. Three Pilot Family Courts were established in the Capital Dhaka Judgeship, which exclusively used judicial settlement to resolve family cases including, divorce, restitution of conjugal rights, dowry, maintenance and custody of children. All three Pilot Programs were fully functioning by January 2001, once judges has began successfully settling cases, the program was expanded slowly to additional courts throughout the country. By the end of the first year of the program of Judicial Settlement Procedure in family disputes has effectively been introduced in 16 Pilot family courts in 14 districts of Bangladesh. Bangladesh Mediation is a facilitative, informal, non-binding, confidential process directed by judicial offices under this system each case assigned to the ADR track is resolves by association on by mediation within six months of filling. The majority of ADR in Bangladesh in court annexed. The Mediation Program in Bangladesh is coordinated through the court registration process which assigns cares to either the mediation or the regular trial track.ADR in Italy: Chamber of Commerce Mediation

ADR was institutionalized in the Italian legal System in 1993 by the passage of law 580, the restructuring of the chamber of commerce. This law provides that mediation should be utilized as a dispute resolution mechanism for commercial disputes at the chamber of commerce Enabled by the Passage of these and subsequent legislation a national non-court annexes mediation program has developed at the chamber of commerce in Italy. Italian mediation at the chamber of commerce is primarily facilitative voluntary and is entirely confidential. Mediation sessions generally last several hours with follow-up meetings if necessary. In Italy mediation includes attorneys, notaries and Psychologists; a legal degree is not required. However, 80% of mediators are lawyers. In Italy the settlement rate for mediation is outstanding over the last few years.

ADR in the Netherland Private and Court Annexed Mediation

The Netherlands Mediation prospect has been in operation for last few years. It began as a Pilot Project in one court then expanded to seven courts of first instance and one court of appeal and has eventually moves to every branch of Jurisdiction. Mediation in the Netherlands in facilitative voluntary and confidential, no special legislation was introduced for its establishment. The Netherlands has both Private and court-annexed mediation in the Netherlands, Mediation sessions are coordinated by a non-Judge coordination. The Netherland Mediation Prospect evolves on a Pilot basis, slowly expanding to incorporate a large number of courts. As Mediation first develops courts offers Mediation free of charge during Mediation week.

ADR in the United States; Private and court Annexed ADR ( ADR was introduced in US Courts

In the early 1980s in an effort to rapidly resolve the large number of backlogged cases pending before the courts and address the considerable expenses associates with trail. Multiple court appearances extensive evidentiary discovery and lengthy trials were a considerable monetary burden on courts attorneys and litigations. The four most prominent ADR mechanisms utilizes in the United States (i) early judicial case management (ii) an ADR mechanism, such as Mediation, arbitration, Judicial settlement or early neutral evaluation. The United States utilizes court annexed and private. ADR program parties can seek settlement either via a neutral retained by the court through a court annexed program on via private neutral usually employs by a for profit Mediation center). Typically, court annexed ADR programs are administered by ADR coordinators who specialize in paining litigants with appropriate settlement officers ADR in the United States is governed by broad legislation which allows courts throughout the country to develop unique ADR programs. There programs and mechanisms have been monitored, critically evaluated and refines in the thirty year since their introduction.Status of ADR in India- The big question is whether mediation and arbitration have the same value of litigation?

Whether the mediation settlement and arbitration awards equal a court degree? The answer is yes. The Arbitration and conciliation act passed in 1996 ensures high validity for their settlement

Section 34 and 35 of the act says that the arbitration awards share be binding and final to the parties and person claiming under them, a recourse to a court against an arbitral award may be made only on a few circumstances as like when a matter is decided beyond the scope of arbitration or the procedure was not in accordance with the agreement between the parties .Even though the arbitration and conciliation act 1996 was enacted to give importance to conciliation and giving statutory recognition to conciliated settlement giving the same status of a court decree for its exception no new effort was taken by the courts or by the lawyers to utilize the provision and encourage the lawyers to utilize the provision and encourage the litigants to choose the method . Even though some mediation training and familiarization programs were conducted it did not create the real effect. The amendment of the CPC referring pending court matter to ADR was not welcomed by many lawyers and the amendment was challenged. The honorable supreme court of India has pronounced a landmark in Salem Advocate bar association Tamilnadu Vs Union of India where it held that reference to mediation conciliation and arbitration are mandatory for court matters .This judgment of Supreme Court of India will be the real turning point for the development of mediation in India. PART-VIOthers approach to Court for promoting ADR

There are different process of approaching court but for promoting ADR the process are as follows:-

Family Consultants ( They are retained to work with parties to dispute arising out of separation and divorce. They are professionals such as social worker on Psychologist, experienced in dealing with child and family issues and are appointed by the court.

Less Adversarial Trail ( Its hallmark is the Judges retains the control over the proceedings. The parties are required to work with a family low consultant before the trial commences.Receiving on managing expert evidence ( This kind of conferencing of experts, possibly using mediation techniques can be uses to assist experts to settle on a Joint expert opinion or report which might be admitted into evidence.

ADR techniques that might also be applied:

Judicial on early case appraisal ( An appraisal process would aim act providing an indication of the strength, weakness or likely outcome of the care. The appraisal could be provided shortly after filing either by a Judge or a Person engaged by the court and agreed by the parties.

Case Management Conferencing ( Conference or conferencing is a general term which refers to meeting in which the parties or their advocates or third discuss issues in dispute. Conferencing may have variety of goals and may combine facilitative and advisory dispute resolution.

Conclusion:-

Lastly, the importance of ADR mechanism can be aptly put in the words of former U.S President Abraham Lincoln.

Discourage litigation persuade your neighbours to compromise whenever you can point out to them how the nominal winner is often a real loser, in fees, expenses, waste of time. Halsburys Laws of England (Butterworths, 4th edition, 1991) para 601,332

.Universal Law Series. Arbitration & ADR. Ashwinie Kumar Bansal, Book foreword by Dr. H.R Bhardwaj, Union Minister for Law and Justice and Chairman, ICADR.

Ronald Bernstien Derek Wood in Handbook of Arbitration Practice, Second Edition, p. 9.

See Encyclopedia of Forms and Precedents Vol. 3(1) paragraph 2(11).

(2001) 10 NWLR Part 722 page 559 Encyclopedia of Forms and Precedents Vol. 3(1) paragraph 2(11).

DK Sampath,Mediation,NLSUI,1991,Foreword,p viii

VR Krishna Iyer, Some Half-hidden aspects of Indian Social Justice, EBC, 1980, p 117.

Roger Fisher, William Ury and Bruce Patton, Getting to yes: Negotiating Agreement without Giving In, 1992, p xiii.

Ginny Pearson Bames, Successful Negotiating, P 14.

Institute for Dispute Resolution, Pepperdine University (USA), Mediation: The art of facilitating the settlement.

M Anstey. Negotiating Conflict, 1991, pp 91-92

David L. Threlkeld & Co. Metallgesellschaft Ltd, 923 F.2d 245, 248 (2d Cir. 1991).

Judge Jessup used these terms to describe those rules of law, whether local, national, or international, which govern cross-border relationship and transactions: see Jessup, Transnational Law, Storrs Lectures on Jurisprudence (1956).

Data collected from paper presented on the conference organizes institute for the study and Development of legal system 2005.Report on the Turkish Civil Justice Conference: ADR learning program By retired Chief Justice Mustafa Kamal

Data collected from paper presented on the conference organized by Institute for the study and Development of legal system 2005. Report on the Turkish Civil Justice Conference; ADR learning Program by Stefana Assali.

. Paper presented on the conference organizes by (ISDLS) institute for the study and development of Legal systems (2005) . Report on the Turkish Civil Justice conference ADR learning program By Judge Dery Reling.

Paper presented on the conference organizes by ISDLS institute for the study and Development of Legal System (2005), Reports on the Turkish Civil Justice Conference; ADR leading program.

Alternative Dispute resolution The Indian Perspective (Blog)

Introduced through Family Law Act 2006 in India.

Krishna Sarma Corporate Law Group, India Momota Oinam,Angshuman Kaushik. Development and Practice of Arbitration in India Has it Evolved as an Effective Legal Institution available at HYPERLINK "http://iis-db.stanford.edu/pubs/22693/No_103_Sarma_India_Arbitration_India_509.pdf" http://iis-db.stanford.edu/pubs/22693/No_103_Sarma_India_Arbitration_India_509.pdf