“Final-Offer Arbitration”: A Procedure to Save Time and Money?
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This is an introduction to the so-called “Final Offer Arbitration” (FOA), sometimes also referred to as pendulum or baseball arbitration. FOA is a model of arbitration that originated in the late 1940s and consolidated in the 1970s in the USA to resolve labour disputes in the public sector and the baseball league, hence the name. FOA differentiates itself from conventional arbitration owing to the incentives it sparks in parties’ conduct to reach a mutually agreeable settlement, its celerity in issuing an award and, accordingly, its overall ability of keeping proceedings costs in check.
As arbitration hubs are stepping on the gas of creativity to a) compete among themselves in providing their prospective users with the most efficient and innovative ways to solve their disputes, and b) not lose market share in favour of blooming regional arbitration centres, FOA may deserve consideration since it is a relatively unknown model of arbitration, and yet it aims at achieving the very same goals and implementing the same principles (procedural economy, swiftness, and fairness) by which arbitral institutions are shaping their reforms.
After presenting FOA’s special procedure and pondering its advantages and challenges, the reader will be left with a question.
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