General

Jurisdiction

FORUMS OF DISPUTE RESOLUTION IN MALAYSIA

Parties can negotiate till a satisfactory settlement if they do not wish to go through any courts. Other methods such as arbitration and litigation are being use too.

In Malaysia , arbitration has gained popularity in recent years. Because of the informal nature of arbitration, it  help contract partners being more likely to keep their business relationship during and after the dispute resolution process.

For an arbitration to take place, the disputing parties must agree to take their dispute to arbitration. Normally, this agreement is often made before the dispute arises and is included in the contract. But it may also be made after the contract is negotiated or after the dispute has arisen. In agreeing to arbitration the parties are agreeing that their dispute will not be heard by a court but by a private individuals known as the arbitrators. If the parties have agreed to arbitration, the courts will normally refuse to hear their case to encourage the party to honour their agreement to arbitrate.

Anyone may represent a party in arbitration in Malaysia.

Some of the key benefits of arbitration over litigation include:   

·      Maintain relationship - often the relationship is maintained between contract partners during and after the dispute resolution process 

·      Choice of arbitrator – the parties are free to appoint an arbitrator who is trained and most qualified to arbitrate the issues in dispute 

·      Informality – usually less formal than litigation proceedings 

·      Less costly than litigation - especially where it involves a ‘documents only’ arbitration 

·      Enforceability – arbitration awards in Malaysia upon application by either party may be enforced as a High Court judgment. 

·      Finality - the award is final and legally binding.

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