Expert Determination is a form of Alternative Dispute Resolution (ADR) in which the parties to a dispute agree to appoint an independent expert to make a binding decision on a technical or factual issue related to their dispute.
The expert appointed in the process is typically someone with specialist knowledge or expertise in the area relevant to the dispute. The expert is appointed by agreement between the parties and can be a single expert or a panel of experts.
The scope of the expert determination is defined by the parties and typically focuses on technical or factual issues, such as construction or engineering disputes, valuation disputes, or disputes involving complex scientific or technical issues. The expert's decision is binding and final, meaning that the parties agree to accept the expert's decision and are bound by it.
Expert determination can be a quicker and less expensive alternative to formal litigation or arbitration because it focuses on the specific technical or factual issue at the heart of the dispute, rather than requiring a full-scale hearing on all aspects of the dispute. Additionally, the expert's decision is usually delivered much quicker than a decision from a court or arbitral tribunal, which can take months or even years to be delivered.
One of the main advantages of expert determination is that it allows the parties to benefit from the expertise of a specialist in the field, who is able to make a decision based on their technical or factual knowledge. The expert's decision is also usually final and binding, which can provide the parties with certainty and finality on the issue in dispute.
However, one of the disadvantages of expert determination is that it may not be appropriate for disputes that involve complex legal issues or where the dispute requires a full consideration of the facts and evidence. Additionally, the expert's decision is typically final and binding, meaning that there is limited scope for appeal or review of the decision. Finally, there may be issues with enforcing the expert's decision in certain jurisdictions, particularly if the decision is made by a foreign expert or panel of experts.
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