In short
Both give a binding outcome without going to court. Arbitration is a formal process under the Arbitration Act 1996, often with hearings and fees that grow with the work involved. Dispute Neutral is expert determination: a lawyer decides on the documents alone, for a fixed fee, within 10 business days of the matter being ready.
Key facts
- Arbitration is governed by the Arbitration Act 1996; an award can be enforced like a court judgment with the court's permission.
- Dispute Neutral's neutral acts as an expert, not an arbitrator, so the Arbitration Act does not apply.
- A Dispute Neutral decision is binding save fraud or manifest error; if not followed, it may be possible to apply straight for summary judgment.
- Dispute Neutral fees are fixed at £650 to £1,500 + VAT, for disputes up to £150,000.
What arbitration is
Arbitration is a private alternative to court, governed in England, Wales and Northern Ireland by the Arbitration Act 1996. An arbitrator, or a panel, hears the dispute and makes an award. The process can include pleadings, disclosure of documents, witness statements, expert evidence and a hearing. The award is binding, and with the court’s permission it can be enforced in the same way as a judgment. Arbitrators usually charge for their time, and institutional fees may apply on top.
Arbitration suits large or complex commercial disputes, international contracts, and cases where the parties want a formal hearing.
What Dispute Neutral is
Dispute Neutral uses expert determination. Both parties sign an agreement to accept the decision. An independent lawyer with at least 15 years’ practical experience reads both sides’ written cases and evidence and issues a written decision within 10 business days of the matter being ready. The fee is fixed by the amount in dispute. The decision is binding save in cases of fraud or manifest error, If a party does not follow it, the other can enforce it; depending on the matter, it may be possible to apply straight for summary judgment or to serve a statutory demand.
Side by side
| Compared on | Arbitration | Dispute Neutral |
|---|---|---|
| Legal basis | Arbitration Act 1996 | Contract (expert determination) |
| Format | Formal procedure, often with a hearing | Written submissions only |
| Time | Usually months | 10 business days once the matter is ready |
| Cost | Arbitrator’s fees, usually by time spent | Fixed: £650 to £1,500 + VAT |
| Best for | Large, complex or international disputes | Business disputes up to £150,000 |
| Enforcement | As a judgment, with court permission | As a binding contractual decision; often by summary judgment or a statutory demand, depending on the matter |
Which should you choose?
- Choose arbitration for high-value or complex disputes that need witnesses, experts or a hearing.
- Choose Dispute Neutral for disputes up to £150,000 that can be decided on the contract and the documents, where cost and speed matter.
This guide is general information, not legal advice.