Original scientific paper
Final Offers and Sealed Offers as a Means of Reducing the Time and Cost of Arbitration
Andreas Reiner
; ARP Andreas Reiner & Partners; Honorary Professor at the University of Economics and Business, Vienna
Abstract
The paper discusses two techniques that aim at expediting arbitrations and reducing costs as well as at having the arbitrator(s) and parties work proactively together promoting settlements - “final offer” arbitration (also called “baseball” arbitration) and “sealed offer” arbitration.
In the first part, author defines final offer arbitration and discusses its pros and cons, as well as arbitrator’s role within this kind of procedure. In addition, several kinds of final offer arbitration are presented: issue-by-issue, package, dual offer, multi-round, with the stipulation of a penalty, with the use of an independent fact-finder and, finally the use of FOA for purposes of quantification. Besides, author indicates the areas in which this technique could be used - simple monetary disputes and, more generally, in the quantification phase following a determination on liability.
The second part of the paper deals with sealed offer arbitration, defines it and gives its advantages and disadvantages. Additionally, development of this technique in English law is explained.
It is concluded that those techniques serve arbitration in several ways – enhancing effectiveness, cheapening it and encouraging settlement between the parties.
Keywords
international arbitration; time and cost of arbitration; final offer arbitration (FOA); sealed offer arbitration (FOA)
Hrčak ID:
93121
URI
Publication date:
3.5.2012.
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