South African Courts, both Magisterial and Supreme is operating beyond capacity and unscrupulous companies are using this fact to their own advantage by purposefully defaulting on their business and contractual obligations.
Good Corporate Governance according to the recommendations of the King III report
- Places a fiduciary duty on management to consider the use of Alternative Dispute Resolution (ADR), in particular mediation and arbitration, before deciding to litigate.
- In addition, the Medium Term Strategy of the Department of Justice also gives a clear indication that government intends applying mediation to reduce the backlogs in courts.
- Internationally, many of SA’s trading partners, as well as institutions such as the World Bank and International Finance Corporation, use and promote the use of mediation for resolution of commercial disputes, including investment-related ones
With this reality in mind, The East Rand Chamber Of Commerce established an arbitration facility for commercial disputes for their members, called the East Rand Commercial Arbitration Board.
Not only do the Chamber provide participating members with assistance in preparation to become complaint with arbitration requirements, (Both disputing parties must agree to arbitration therefor invoices, order forms and quotations will have to contain a paragraph where both parties agree to the arbitration process) they also accept and deliver all the required documentation (Filling of the Statement of claim) as well as paying all fees due by the claimant prior to arbitration for each and every case presented for arbitration without limit.
Should the respondent fail to pay their portion of the pre-arbitration fees the Chamber will provide the funds to allow the dispute to be properly presented for arbitration.
Only in the event of both parties failing to reach an agreement and the arbitrator is asked to adjudicate the dispute, will the member become liable for costs of the arbitrator at a daily rate.
The following advantages are evident:
- Disputes are settled within 30 days or less.
- All administrative costs are covered even if the respondent fails to pay.
- The arbitrators decision can be made a court judgement.
- Due to the speedy process all evidence are relevant and fresh.
- The process is affordable and precise.
This service is specifically tailored for Business to Business disputes and is unable to accommodate any other events.