Retrospective Arbitration

Retrospective Arbitration

General Overview:
Retrospective arbitration is a form of alternative dispute resolution where parties agree to resolve a dispute after the fact, typically regarding events that have already occurred. This type of arbitration can be particularly useful in situations where the parties wish to avoid the formalities and public exposure of court proceedings.

Detailed Explanation:
In retrospective arbitration, the parties involved in a dispute may decide to submit their disagreement to an arbitrator after the events giving rise to the dispute have already transpired. This could involve issues such as contract breaches, business disagreements, or personal disputes where the resolution needs to address actions that have already taken place.

For example, in a business context, if two companies entered into a contract and one party claims that the other failed to fulfill its obligations, they may choose to engage in retrospective arbitration to resolve their differences. Instead of going to court, they would select an arbitrator to review the facts and circumstances surrounding the alleged breach and make a binding decision.

The process often involves the following steps:

1. Agreement to Arbitrate: Both parties must agree to submit their dispute to arbitration after the event has occurred, often outlined in a pre-existing arbitration clause or a separate agreement.

2. Selection of an Arbitrator: The parties select a neutral third party with expertise relevant to the dispute to serve as the arbitrator.

3. Presentation of Evidence: Each party presents evidence and arguments regarding their position on the issue at hand.

4. Arbitrator’s Decision: The arbitrator reviews the case and issues a binding decision, which the parties must adhere to.

Retrospective arbitration can provide a more efficient and private means of resolving disputes as compared to traditional litigation. It allows parties to avoid lengthy court processes and can lead to a resolution that is mutually acceptable without the need for public scrutiny.