Arbitration – the non-judicial settlement of a dispute by means of hearing before an impartial umpire (Arbitrator) or tribunal. Parties submit “points of claim” and evidence to the Arbitrator who will make a determinative decision.
Arbitration is an Alternative Dispute Resolution (ADR) process, however unlike other ADR methods, the decision of the Arbitrator (known as an “Arbitral” or “Arbitration” Award) is legally binding upon the parties.
In NSW the Commercial Arbitration Act 2010 No 61 (NSW) governs the recognition and enforcement of arbitral awards. Pursuant to section 35 (1), an arbitral award is recognised as binding in NSW (irrespective of in which State or Territory it was made) and can be enforced upon application in writing to the Court.