Q.
What is 'adjudication'? How does it apply in dispute between parties? How does it differ from 'Arbitration'?
A.
Adjudication is the legal process by which an arbiter or judge reviews evidence and argumentation including legal reasoning set forth by opposing parties or litigants to come to a decision which determines rights and obligations between the parties involved.
- Disputes between private parties, such as individuals or corporations.
- Disputes between private parties and public officials.
- Disputes between public officials or public bodies.
"The legal process of resolving a dispute. The formal giving or pronouncing of a judgment or decree in a court proceeding; also the judgment or decision given. The entry of a decree by a court in respect to the parties in a case. It implies a hearing by a court, after notice, of legal evidence on the factual issue(s) involved. The equivalent of a determination. It indicates that the claims of all the parties thereto have been considered and set at rest."[1]
Adjudication is a means of dispute resolution that allows a party (the claimant) to have their dispute against another party (the respondent) determined based on an assessment of the merits of the claim by an appropriately qualified and independent industry expert i.e. the adjudicator.
Statutory Adjudication is essentially an adjudication process prescribed by Construction Industry Payment & Adjudication Act 2012 (CIPAA), allowing a party owed monies under a construction contract to promptly obtain payment from the non-paying party. It is conducted privately and ensures confidentiality. It is a mandatory and statutory process that does not require the agreement of the parties’ to commence the process and prevails over any contractual agreements to the contrary between the parties.
Adjudication offers a relatively simpler, cheaper and faster process compared to arbitration and/or court proceedings. The adjudicator must make a decision within a prescribed period (forty five working days under CIPAA). The adjudicator’s decision is temporarily binding in that it can still be subjected to an arbitration or litigation in court i.e. if either or both the parties so desire. In the interim, the parties must comply with the adjudicator’s decision.
http://klrca.org.my/dispute-resolution