Parties often seek to resolve their disputes through arbitration because of the potential advantages over the courts. Advantages include:
- Unlike in court, parties can select an arbitrator with an appropriate degree of expertise.
- Arbitration is often faster than litigation in court.
- Arbitration can be cheaper and more flexible, and, if desired, less formal than court.
- Unlike court rulings, arbitration proceedings and arbitral awards are confidential.
- Unlike in court, there are very limited avenues for appeal of an arbitral award, which limits the duration of the dispute and any associated liability.
- Due to the provisions of the New York Convention 1958, arbitral awards are generally easier to enforce in other nations than court judgments.