Your step-by-step guide to ONLINE Arbitration
Online Arbitration is arguably the most efficient way to handle your company’s disputes in this rapidly-changing world.
The process is user-friendly, the cost is low and you have the best possible chance of a fair outcome. But you may be uncertain of exactly how to get the process going. Fortunately, a simple six-step plan is all you need to get from start to finish.
Simply follow the instructions below for a smooth application process.
In truth, the best way to use Online Arbitration is by having it top-of-mind from the very start of a new business relationship. Adding a few simple lines to any new contract stating that both parties agree to Online Arbitration in the event of a dispute, guarantees that it will always be the first recourse if problems appear. Add the following wording to your contracts:
Any dispute, difference of opinion, or claim based on a liquid claim or document arising from or related to this agreement will be resolved through arbitration. The dispute, difference of opinion, or claim will be submitted to the "Online Arbitration Centre," which will appoint an arbiter to resolve it in accordance with the Online Arbitration Centre Rules, available at www.onlinearbitration.co.za. Any judgment passed by the Online Arbitration Centre is final and binding on the parties, and no party will have the right to appeal against the judgment. Any order by the arbiter of the Online Arbitration Centre is fully enforceable by any court with the necessary jurisdiction.
However, if you have not added an Online Arbitration Clause to your contracts yet, do not despair. You can still resolve the matter through Online Arbitration if both parties agree to submit to the process. If you have a strong relationship with the business in question, have the conversation and see whether the other party is open to resolve the dispute in this manner.
Online Arbitration can be used to settle any liquid claim (i.e. any claim that is based on an outstanding invoice). Thus, when you are faced with a possible dispute, see whether the issue qualifies for Online Arbitration by testing whether the claim has a financial component and whether it is backed up by invoices or relevant paperwork.
Download a Request for Online Arbitration Form by navigating to the "Documents" section in the menu bar and selecting "Request for Arbitration". It is a user-friendly form that allows you to provide your details, the details of the other party involved, and the nature of your claim. In addition to the Request form, include the following documentation in your submission:
-
The agreement to arbitration by the Online Arbitration Centre, signed by both parties.
-
Your (the applicant’s) affidavit together with the necessary evidence (supporting documents). Remember to keep your affidavit under 5000 words.
-
Evidence that indicates that you (the Applicant) have complied with all statutory requirements and performed in terms of the agreement.
-
A resolution which enables a person to sign documents on behalf of an entity.
Once you are done, submit the form to the Online Arbitration Centre at info@onlinearbitration.co.za
After approving your Request, the Centre will ensure that the Respondent is notified.
-
The Centre will notify the defendant of your Request for Arbitration, at which time they will have 14 days to use the opportunity to file documentation in their defense. Again, this process is simple and the Centre will advise the Respondent on the types of documentation that they need to file.
Typically, this would include an affidavit, the necessary supporting documents and (where applicable) the respondent’s counterclaim.
Next, the Online Arbitration Centre will appoint an Arbitrator. The Centre will base its choice of Arbitrator on the facts of the case as well as the Arbitrator’s background and expertise relative to the case. The assigned Arbitrator will have at least 10 years’ experience in their field. Remember that either party has the right to object to the Centre’s choice of Arbitrator and if sufficient reason is given, an alternate could be assigned to the case.
With the required documentation now in the hands of the Arbitrator, the affected parties now wait for a ruling. While the average time of a traditional litigation matter to reach a fair ruling usually takes up to 24 months, complex cases have been known to take more time. However, the Arbitrator will make it a priority to provide a ruling on the matter within 14 days, ensuring that the case can be completely settled in under 60 days. In the event that there is a counterclaim, the process still only lasts up to 90 days.
Once the ruling is reached, an award can be made to the relevant party. From there, businesses can proceed to execution of the award or reach an agreement for a payment plan.
With that said, particularly difficult cases could require just one extra step.
An award made through Online Arbitration is final and binding. However, there may be cases where issues could arise in the payment of a claim. If a Respondent does not pay the awarded amount, the Applicant can proceed to make their award an order of the court and proceed with execution steps. If you have more questions, download the “More Questions” document by navigating to the "Documents" section in the menu bar.
