More than 13 decades ago, the Grain and Feed Trade Association (GAFTA) joined the business of trading agricultural goods. There are now over 89 nations represented in GAFTA’s membership of almost 1500 organizations.
GAFTA is recognized as an international association with the goals of improving and standardizing contractual terms, fixing the weight and quality of goods, analysis, and certification, defending the interests of market players, and fostering employee knowledge and competence in the international grain and feed trade. The GAFTA’s arbitration process is open and public. Competent arbitrators and eminent international trade law authorities from more than 20 different countries review GAFTA issues.
Arbitration
An arbitrator hears all sides of a dispute and makes a binding decision on the result. To save the time, money, and potential for further escalation of tensions associated with a trial, it is generally preferable to resolve disputes using this method. A single arbitrator or a panel of three arbitrators may decide a case in arbitration (tribunal).
When a disagreement is taken to arbitration, the parties agree to be bound by and follow the award made by the arbitrator. The award is made after both parties have presented their evidence and witnesses, and it is as binding as a written agreement. The award may subsequently be affirmed or annulled by the court. When the award is finalized, it becomes a judgment.
What are the Advantages of Arbitration?
Instead of the usual escalation of anger and hatred that comes with litigation, the parties are encouraged to work together peacefully and frequently construct the settlement.
Since arbitration is a less formal and more flexible procedure, it is often speedier and more cost-efficient than the more tedious court process.
In contrast to trials, arbitration hearings may be arranged according to the convenience of the parties involved (depending on the arbitrator’s availability).
There are less complicated rules of evidence and process. Neither the complex standards of evidence nor the right to discovery, which is sometimes regarded as a delaying and game-playing ploy, apply in arbitration.
There are limited grounds for judicial review to fulfill the parties’ agreement that the award be
The arbitrator or panel of arbitrators is chosen by the parties, giving them the freedom to choose a specialist with the right level of experience and subject competence to provide a fair and just decision. GAFTA arbitration proceedings are secret and privileged.
How do Parties Begin the Arbitration Process?
There are three methods for parties to enter into arbitration proceedings: judicial arbitration, contractual arbitration, and stipulation.
Certain matters must go through nonbinding arbitration before going to trial, as mandated by statute (Code of Civil Procedure 1141.10, et seq.). The goal is to provide a fast and inexpensive method for resolving conflicts fairly and equitably based on the impartial judgment of an arbitrator. Any party unsatisfied with the outcome of a court-mandated arbitration may petition the court for a fresh trial. Since this sort of arbitration is not binding, no one has given up any of their constitutional protections by participating.
Disputes arising out of or connected to GAFTA contracts may be settled by arbitration. It’s based on a deal the parties made before any conflict arose. For a case to be arbitrated under a contractual arbitration clause, both parties must expressly agree to submit their disagreement to arbitration in writing. Arbitration provisions in contracts are often enforceable. There is flexibility in the format of arbitration proceedings. One or more arbitrators will often hear evidence and arguments surrounding the dispute. The arbitrator will subsequently give a ruling and award, which, barring exceptional circumstances, will be final. The parties to a contractual arbitration have agreed upon certain rules or processes to follow.
The parties to a post-dispute stipulation arbitration have already resolved their issue and agreed to have it resolved by arbitration. At that point, the parties must agree on a single set of rules and procedures to use throughout the case. In most cases, a stipulation for arbitration will be legally enforceable, and the arbitrator’s decision will be final.
During the process, the arbitrators will be the judges. They don’t act as lawyers for either side. Lawyers with a lot of experience are needed to prepare cases and determine how likely you will win.
Simply put, how does the arbitration procedure work?
Demand for arbitration, agreement to arbitrate, or court order submitted to ADR Services, Inc. by a claimant; answer to claim filed by opposing party (respondent). After hearing evidence and arguments from both sides, the impartial arbitrator decides. The arbitration hearing’s procedures are worked out in pre-hearing discussions (such as whether the arbitration is to be confidential). The arbitration hearing consists of:
- opening remarks;
- the presentation of evidence (including papers and physical items);
- the testimony;
- cross-examination of witnesses by both sides.
Concluding arguments may be made either orally during the hearing or in a post-hearing brief. An award will be made by the arbitrator. The arbitrator’s judgment is set down in writing and may be as brief as a summary of the relief granted to each party or as detailed as an explanation of the basis for the award. An arbitrator’s ruling is subject to restricted review or appeal only in exceptional cases.
Table of Contents
