“An arbitral award is more than just a decision—it’s the final word in resolving disputes outside the courtroom!” If you’re involved in arbitration or curious about how disputes get settled through this method, knowing what is arbitral award and its implications is essential.
What Is Arbitral Award?
An arbitral award is the formal decision rendered by an arbitration tribunal or arbitrators after hearing the parties’ arguments and evidence. It resolves the dispute submitted for arbitration and is binding on the parties involved.
In simple terms, the arbitration award meaning is the equivalent of a court judgment but issued by arbitrators instead of judges.
Key Features of an Arbitral Award
- Finality: Once issued, the arbitral award is generally final and binding. It can only be challenged on very limited grounds.
- Form and Contents: The award must be in writing, signed by the arbitrators, and include the reasons for the decision.
- Costs and Fees: The award may include the allocation of arbitration costs and attorney’s fees.
- Correction: If there are clerical errors or ambiguities, the arbitral tribunal can correct or interpret the award within a specified period.
When Should an Arbitral Award Be Given?
Under Philippine arbitration rules, the arbitral tribunal must render its award within the time frame agreed upon by the parties or, if none, within six months from the constitution of the tribunal. Extensions may be granted for valid reasons.
Enforcement and Judicial Role
While an arbitral award is binding, enforcement requires confirmation by Philippine courts. Courts may confirm, modify, correct, or set aside an award but only on specific grounds such as:
- Incapacity of a party
- Invalidity of arbitration agreement
- Lack of proper notice or opportunity to present the case
- Award beyond the scope of submission
- Procedural irregularities
- Violation of public policy
Why Is the Arbitral Award Important?
The arbitral award provides a faster, confidential, and often less costly alternative to court litigation. It offers parties a definitive resolution enforceable by courts, promoting certainty and finality in commercial and civil disputes.
Final Thoughts: Mastering the Arbitral Award Process
Understanding what is arbitral award helps parties appreciate the power and limits of arbitration. It’s a vital tool in dispute resolution, especially in commercial and corporate contexts.
For a detailed explanation of arbitral awards in Philippine arbitration, visit this expert resource on arbitral award.
Resolve disputes efficiently—know your rights and the power of the arbitral award!