Severability is a term used in arbitration, meaning the various methods applied in case the arbitration process fails to resolve a dispute. This method works hand in hand with arbitration, or occasionally they may be used independently. Before one decides to engage in arbitration, it is always wise to explore these several options of resolving disputes. The main reason for this is to avoid the lengthy expenses involved in the arbitration. The severability principle includes:
Mediation
There is a slight difference between mediation and arbitration in that the initial one does not involve commitment. In arbitration, there will be rules, whereas, in mediation, there will be options for each other’s opinions. Only common interests will be stressed while attempting to conclude. This process is confidential, and any disclosure cannot be used in the next stage of the dispute. However, the process can be initiated at any time of the debate trying to listen and reconcile the parties’ interests. Therefore, mediation is also known as an interest-based process during arbitration as a rights-based method.
Neutral Evaluation
In arbitration, it is also a severability principle where the parties with a dispute proceed to find a neutral party who listens to each side. The neutral party listens to each side, analyzes the weaknesses and strengths of the matter, and gives a general opinion. This opinion is not binding but guides the concerned parties when final decisions.
Mini trials
These are common in arbitral institutions where we have a panel with one neutral decision-maker and an executive from each of the parties involved in the dispute. The process does not last for long as there is a limited exchange of documents to reach an agreement. The executives in focus are people in the top management and not junior employees in the company who might jeopardize the process. Confidentiality dominates the proceedings to avoid disclosing information in the subsequent trials. This offers an opportunity to solve a dispute before the initial stages and before arbitration, which is expensive.
Determination by Experts
This works hand in hand with arbitration, where an issue involves a highly technical understanding. Both the parties, after agreeing, may request the services of an expert. In this case, the parties might decide to use rules that may not bind the expert’s opinion or vice versa.
Conciliation
Technically in this process, a conciliator listens to two parties in dispute. A proposed settlement agreement is designed according to the views of the conciliator. If the two parties are not satisfied, the conciliator still has a chance of offering another proposal. All these are done for all the parties concerned with a compromise to end the dispute.
Last offer arbitration
In this technique, both parties involved are urged to arrive at an amicable amount to be awarded. The arbitrator only chooses from the proposals presented by each party. It is also referred to as baseball arbitration because it has been chiefly applied in solving disputes involving Major League Baseball players in the United States.