- Arbitration is private and confidential; court hearings are generally public.
- Arbitral awards can be enforced in most countries under the New York Convention.
- There is no appeal on the merits of an international award, and the time to challenge one is strict.
- Arbitration is not automatically cheaper, because the parties also pay the tribunal.
Privacy
Arbitration takes place in private, and the proceedings are confidential. Court proceedings are generally open to the public, and judgments are published.
Enforcing the result abroad
Singapore is a party to the New York Convention, so an arbitral award made here can be enforced in more than 160 countries. Enforcing a Singapore court judgment abroad depends on narrower arrangements with particular countries. For a dispute with an overseas party, this can be decisive.
Who decides, and how
In arbitration the parties choose the arbitrator or arbitrators and the rules that will govern the process. In court, the judge is assigned and the court sets the procedure.
International arbitrations in Singapore are governed by the International Arbitration Act 1994, which gives effect to the UNCITRAL Model Law, and domestic arbitrations by the Arbitration Act 2001. The Singapore International Arbitration Centre (SIAC) is the main local arbitral institution.
Finality
There is no appeal on the merits of an international arbitral award. It can only be set aside on limited grounds, or resisted when enforcement is sought. An application to set aside must be made within three months of receiving the award, and the Court of Appeal has held that this deadline cannot be extended, even in cases of fraud.
In a domestic arbitration, an appeal on a point of law may be possible with the court's permission or the other parties' agreement, unless the parties have agreed to exclude it. Singapore's courts generally support arbitration and set aside awards only rarely.
Cost and speed
Arbitration is not automatically cheaper. Court fees are fixed, while in arbitration the parties also pay the arbitrators and the institution. Arbitration is often quicker, and it tends to be most worthwhile for complex, technical or cross-border disputes.
Check your contract
Many commercial contracts already contain an arbitration clause that decides the question for you. If you are negotiating a contract, or a dispute has arisen, a lawyer can advise on what the clause means and which route serves you best.
This article is general information on Singapore law and is not legal advice. Rules and agency policies change, and every situation is different. For advice on your own circumstances, speak with one of our lawyers.
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