As we all now realize, the needs of digital age has far surpassed the abilities of the civil justice system to resolve business disputes in a fast, inexpensive, confidential, and final manner. Likewise, even traditional arbitration has become cumbersome, expensive, delayed, overly adversarial and just as “rule-based” as the civil justice system. The Civil Law Notary Arbitration Association approach puts all of the fact-finding and decision-making power in the hands of a quasi-public official – the Civil Law Notary, who, in the inquisitorial style of civil law systems acts as the prosecutorial judge in engaging in necessary fact-finding to reach a reasoned decision. This approach obviates the need for an adversarial presentation of facts, traditional discovery, hearings, participation of lawyers and greatly reduces both costs as well as the length of time to a decision.
Equally important is the ability to maintain the confidentiality of both the proceedings and the proprietary documents involved in the dispute. Finally, because the decision of the Civil Law Notary will be expressed in the form of an “Authentic Act”, upon being Apostilled pursuant to the Hague Convention of October 5, 1961, the determination should require no further legalization in signatory countries.
Your dispute gets resolved within a time certain that you have already agreed upon in the arbitration clause of your contract. No more hassles attributable to the scheduling of hearings and the coordination of schedules. Where “justice delayed is justice denied”, the ability to resolve a disputed issue quickly, finally and with binding decision is unparalleled in the area of alternative dispute resolution!
CLNAA’s administrative fees are comparable to those of the American Arbitration Association. Where substantial savings are truly recognized however is in the area of the arbitrator’s fees, in part because there are no three (3) member or panel arbitrations and in part because of the limited time for the arbitration to close and because there are no adversarial hearings. Most importantly however are the savings in attorney’s fees realized by the parties because they needn’t have legal counsel take or respond to discovery or present their cases at an arbitration hearing.
When a legal dispute arises between two signatories to a contract with a CLNAA arbitration clause, one of the parties must submit the agreement along with a description of the dispute/arbitration demand and the filing fee to the CLNAA and an arbitrator will be appointed within seven (7) days. Each party gets one strike to the appointed arbitrator which must be exercised within three (3) days. After that, the arbitrator appointed assumes jurisdiction of the dispute and deals directly with each party separately to render a decision and to draft an “authentic act” resolving the dispute within the time-frame specified by the parties.