Arbitrator Overview: Understanding the Role of a Neutral Third Party
Arbitration is a private dispute resolution process that involves the use of a neutral third party called an arbitrator. The arbitrator is appointed by the parties involved in the dispute to make a binding decision that resolves the issue. In this article, we will discuss the role of an arbitrator and how they assist in resolving disputes.
Arbitrator Qualifications
Arbitrators are typically selected based on their qualifications and experience. The parties involved in the dispute may agree on the qualifications required for the arbitrator, including their industry expertise and legal background. The selected arbitrator should be objective, impartial, and free from any conflicts of interest.
Arbitration Process
The arbitration process typically begins with the appointment of an arbitrator. The arbitrator will then establish guidelines for the arbitration process, including procedural rules and timelines. The arbitrator will facilitate communication between both parties and conduct an investigation to determine facts and evidence related to the dispute. After conducting the investigation, the arbitrator will make a binding decision on the dispute.
Arbitration Advantages
Arbitration has several advantages over traditional litigation. Arbitration is usually much quicker and less expensive than litigation, making it a preferred option for many businesses and individuals seeking to resolve disputes. Arbitration is also confidential, which can be beneficial for parties who do not want to air their dispute in a public court. Additionally, arbitrators have expertise and knowledge in the specific industry or area of law related to the dispute, providing an expert decision.
Disadvantages of Arbitration
While arbitration has many advantages, it also has some disadvantages. For example, parties may have limited access to discovery procedures or appeals, as in traditional litigation. Additionally, while the parties may choose the arbitrator, they are unable to control the final outcome of the decision.
Conclusion
Arbitration is a popular dispute resolution process that involves the use of a neutral third party called an arbitrator. Arbitrators are selected based on their qualifications, experience, and impartiality. During the arbitration process, the arbitrator facilitates communication between both parties, conducts an investigation and makes a binding decision on the dispute. While there are some disadvantages to arbitration, including limited access to discovery and appeals, it is an efficient and effective way to resolve disputes in a confidential and neutral setting.
What is an arbitrator?
An arbitrator is neutral individual brought in to help negotiate an agreement between parties in what is known as arbitration. An arbitrator is not court appointed and the parties themselves are the ones who choose the arbitrator. Arbitrators are used in civil matters, especially contract disputes and depending on the specifics their decision can be either binding or non-binding.
What are the qualifications for being an arbitrator?
The American Arbitration Association keeps a current roster of Arbitrators and lists a number of qualifications that an individual must meet in order to be an arbitrator. These qualifications include:
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Even though an arbitrator is free to make his/her own determinations about disputes there are essential rules that an arbitrator must follow. Most importantly is neutrality. An arbitrator must have no bias or prejudice towards any party or matter involved and is capable of applying standard principles to the matter at hand. The arbitrator must also be capable of managing the hearing process as well as making an impartial evaluation of evidence.
Why would I want an arbitrator?
There are numerous reasons why parties on the track of litigation may want an arbitrator make a decision in lieu of court intervention. One of the most compelling reasons is the cost. Court costs, attorney’s fees, and judgment awards can easily add up to the tens of thousands of dollars. In contrast, arbitration, although costly, is comparatively inexpensive. The cost of an arbitrator can often be between $1,000 and $2,000 per day. Arbitration, in general, will last than $10,000 on average, and that cost will be split between the parties involved.
Another reason to get an arbitrator is that arbitration is considerably less time consuming than litigation. Litigation can last for months, if not years, when you factor in pre-trial, trial, appeals, etc. In contrast, arbitration will consist of 3 to 4 days on average.
Other reasons for picking an arbitrator are that arbitration is not a public issue and the exclusionary rules of evidence do not apply. Because many potential litigants do not wish to have their “dirty laundry” brought into the public eye they might choose arbitration instead. Arbitration is a private matter with no public record. The arbitrator is sworn to uphold confidentiality. For this reason, many corporations require mandatory arbitration so that these issues are not brought into the public eye. Arbitration is also considered a “free for all.” The exclusionary rules of evidence are not applicable as are the rules of civil procedure. Depending on the evidence this may be a positive or negative aspect of arbitration, depending on who holds damning evidence that would be considered inadmissible in a court of law.
