Legal Glossary Entry
Arbitration Private, Binding Dispute Resolution
Arbitration is a private process for resolving disputes. A neutral third party, the arbitrator, hears both sides and issues a binding decision. This method bypasses traditional court litigation.
Arbitration is a form of alternative dispute resolution (ADR). Parties present their case to a neutral arbitrator or panel, who issues a decision that is typically final and legally binding. It offers a structured way to resolve conflicts outside of the court system.
What is Arbitration?
Arbitration is a method of resolving disputes without going to court. Parties agree to submit their disagreement to one or more impartial individuals, known as arbitrators. The arbitrators hear evidence and arguments from both sides and then render a decision, called an award. This award is typically legally binding on the parties involved.
Arbitration in Sweden vs. Common Law Jurisdictions
In Sweden, the Arbitration Act (SFS 2018:1954) governs arbitration and emphasizes party autonomy. The Stockholm Chamber of Commerce (SCC) is a major international arbitration institution. Common law jurisdictions, like the UK or US, also highly value arbitration. Their specific laws, such as the English Arbitration Act 1996 or the U.S. Federal Arbitration Act, share many principles but have distinct procedural nuances. Both systems aim for efficient, private dispute resolution.