The Chartered Institute of Arbitrators: Hackney council

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Hackney council predicted to save £1 million through new arbitration service

Service spells a win-win situation for Hackney

November 1, 2004 - Hackney Council today announced a new independent arbitration service, which should save the council up to £1 million each year and avoid lengthy court disputes for tenants.

The service, which will be administered by the Chartered Institute of Arbitrators (CIArb), has been set up as an alternative to the current onslaught of "no win, no fee" solicitors who are submitting bills in excess of £7,500 for each case. Canvassers generate many of these claims and damages awarded are frequently used to pay part of the solicitor's costs. This means that in many cases the tenant does not receive the full payment due.

In many cases complaints are relatively straight forward, involving the completion of repairs and any damages awarded for inconvenience, stress and personal injury. Often these complaints do not justify lengthy and costly court proceedings. Through this service an arbitrator will make an independent and unbiased decision within eight weeks of the tenant making the application for arbitration. The process will cost a fraction of going to court. Arbitration does not usually permit legal aid but under the rules of this service the council will provide residents with financial support where it is appropriate.

Hackney’s cabinet member for housing, Jamie Carswell said: “This service will create a winwin situation for everyone. Tenants will benefit by avoiding lengthy litigation and savings made by the council through arbitration will be directly re-invested into Hackney Council's Decent Homes Scheme.”

Arbitration is used widely in the housing sector and is extremely popular with a variety of other bodies including the Department of Constitutional Affairs, the Office of the Deputy Prime Minister and the Legal Services Commission.

Dawn Eastmead, head of housing management division at ODPM said: ‘’ This scheme will enable Hackney Council to ensure a fair and effective way of resolving disputes. The decision made by the arbitrator is binding so the scheme should offer tenants similar protection to that which they could obtain in the courts, but at greater speed and reduced cost.’’

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Notes to the Editor:

About the Chartered Institute of Arbitrators
The Chartered Institute of Arbitrators (CIArb), founded in 1915, is a not-for-profit organisation. It is a global body, with headquarters in London and branches worldwide. With nearly 11,000 members in
over 90 countries, the CIArb promotes and facilitates the resolution of disputes by arbitration and alternative means of dispute resolution (ADR) for a wide variety of business and commercial sectors. These include media, technology and communications, financial services and insurance, sport, medicine, health, commodities, construction, shipping, engineering and the automotive industry.

In addition to the provision of ADR services, the institute also provides educational programmes around the world. In 2004 this includes China, Russia, Europe, the Middle East and Central Asia.
Among its members are many respected international lawyers, engineers, accountants, surveyors, architects, business managers and other professionals.

For further information please contact:
Victoria Henry or Jenny Roberts
Kaizo
020 7580 8852
firstname.surname@kaizo.net

Chloe Goddard
Communications executive
Hackney Council
0208 356 3528
Chloe.Goddard@Hackney.gov.uk

THE CHARTERED INSTITUTE OF ARBITRATORS

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Hackney council predicted to save £1 million through new arbitration service

Notes to the Editor:

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