Arbitration is a process tailored around the parties to a dispute but it is based on the principles of English law and it delivers a binding decision. The parties to a dispute are able to define the issues to be determined in arbitration. The decision would then be made by an agreed arbitrator, in accordance with the law.
There are several benefits of using arbitration instead of making an application to court. The parties themselves are able to select their arbitrator (or have one selected for them if they cannot agree) and it is this arbitrator who will see their case through to its conclusion. In court, it is extremely rare for a case to be heard by the same judge at different hearings and this can sometimes lead to an inconsistent approach.
The process is usually much quicker than making an application to court as it only needs to fit around the diaries of the arbitrator and the parties, rather than only progressing when the court can offer a hearing date.
An arbitrator would need to be paid for privately and there are, of course, several instances where this may not be possible. However, if it seems as though a court application is necessary, it could well be cost-effective to opt for arbitration, even with the parties having to meet the cost of the arbitrator.