Arbitration.

Governing law

• Domestic arbitration in South Africa is governed by the Arbitration Act 42 of 1965.
• International arbitration is governed by the International Arbitration Act 15 of 2017, which incorporates the UNCITRAL Model Law and gives effect to the New York Convention. The 2017 Act does not repeal the 1965 Act.
• The parties may choose institutional rules, such as those of the Arbitration Foundation of Southern Africa (AFSA).

How it works

• An arbitration agreement or clause, usually in the contract, starts the process.
• The parties agree the arbitrator or the appointing body.
• Each side states its case in writing and the evidence is heard.
• The arbitrator issues a written award.

The award

Courts generally enforce a valid award in the same way as a High Court judgment. An award can be set aside only on limited grounds, such as improper notice, excess of the arbitrator’s mandate or conflict with public policy, and the application must be made within a fixed time.

When it suits

Arbitration suits disputes that need a final decision, in private, from a decision-maker who understands the subject. Building disputes often turn on technical records, which is why an arbitrator with architectural experience is useful.

Sources

• Arbitration Act 42 of 1965.
• International Arbitration Act 15 of 2017 (incorporating the UNCITRAL Model Law and giving effect to the New York Convention).
• Arbitration Foundation of Southern Africa (AFSA), institutional rules.