In the ever-evolving world of business, resolving disputes efficiently and cost-effectively is crucial. Traditional litigation can be time-consuming and expensive, which is why many companies in South Africa are turning to online arbitration as a better alternative. The Online Arbitration Centre offers a streamlined process that allows businesses to settle disputes quickly, fairly, and with minimal disruption. Here’s a step-by-step guide to our six-step arbitration process.
Step 1: Agree to Online Arbitration
The first step in the arbitration process is agreement. To utilise online arbitration in South Africa, both parties must agree to resolve their disputes through this method. The most effective way to ensure this is by including an arbitration clause in all your business contracts. This clause should clearly state that any disputes, differences, or claims related to the agreement will be resolved through arbitration by the Online Arbitration Centre. If your contracts don’t already include this clause, you can still proceed with online arbitration if both parties agree to it at the time a dispute arises.
Step 2: Classify the Claim
Not all disputes qualify for online arbitration in South Africa. The process is specifically designed for liquid claims, which are claims based on an outstanding invoice (good sold, services rendered) or similar financial documentation. To determine if your dispute qualifies, check whether your claim has a financial component and is backed by the necessary paperwork. If your claim meets these criteria, it can be classified for online arbitration.
Step 3: Complete the Request for Online Arbitration
Once you’ve classified your claim, the next step is to formally submit it for arbitration. You’ll need to download and complete the Request for Online Arbitration form. This user-friendly form will ask for basic details about the dispute, including information about both parties and the nature of the claim. Along with the form, you’ll need to submit supporting documents, such as: the agreement to arbitration signed by both parties, an affidavit detailing the claim, which should be under 5,000 words, evidence that all statutory requirements have been met and a resolution authorising a person to sign documents on behalf of an entity.
After completing the form, submit it to the Online Arbitration Centre. Once your request is approved, the other party will be notified.
Step 4: Filing the Defense
After the request is submitted, the defendant has 14 days to file their defense. This is a straightforward process where the defendant provides their documentation, including an affidavit, supporting documents, and any counterclaims. The Online Arbitration Centre will guide the defendant on what is required to ensure a fair process.
Step 5: The Arbiter Issues a Ruling
Once all documents are submitted, the Online Arbitration Centre will appoint an arbiter based on the case's specifics. The arbiter, who will have at least 10 years of experience in their field, will review the documentation and issue a ruling within 30 days. This swift resolution ensures that your dispute is settled in under 60 days. In cases involving counterclaims, the process may extend to 90 days.
Step 6: The Award is Made an Order of the Court
The final step in the process is the enforcement of the arbiter’s ruling. The award issued through online arbitration in South Africa is final and binding. If the respondent fails to comply with the award, the applicant can make the award an order of the court, which allows for the execution of the ruling.
Conclusion
The arbitration process at the Online Arbitration Centre is designed to be simple, efficient, and fair. By following these six steps, businesses can resolve their disputes quickly and effectively, without the need for lengthy and costly litigation. If you have more questions about the process or need assistance, feel free to reach out to our team.
For more information and to download the necessary documents, visit the "Documents" section of our website.
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