Binding third-party ruling
MEDIATION
ARBITRATION
BINDING THIRD PARTY RULING
EXPERT REPORT
RAPID CONFLICT RESOLUTION
CONFILICT PREVENTION
Binding third-party ruling
The parties can also resolve a dispute by means of a binding third-party ruling: a decisive ruling from an independent third party. Incidentally, the Dutch term is ‘bindend advies’ which translates literally as ‘binding recommendation’ but this is not entirely correct as the ruling is a decision, not a recommendation. Some disputes are less suited to arbitration, for example where it concerns a minor case for which a multidisciplinary arbitration board would be disproportionate. If the parties still wish to receive an independent final opinion from an expert, a binding third-party ruling is the most appropriate method.
The procedure
The procedure is straightforward. If the parties reach agreement on who is to be the adviser charged with giving a binding ruling, that person will decide how to approach the process in consultation with the parties involved. Depending on the situation, the adviser visits the parties, holds one or more sessions or deals with the case entirely in writing if the parties’ counsels have managed to reduce the case to a single core element. Since we do not need to engage an external expert, this procedure is often cheaper.
The advantages of a binding third-party ruling
- It reduces the costs of minor disputes.
- It is a good option for isolated subproblems.
- It is settled by a SGOA expert.
Obstacles
- It is not an enforceable order.
- It is not appropriate for a complex dispute.
- It is not appropriate if proper legal substantiation is required.
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