Arbitrators are impartial third parties who make a final decision on a dispute. Considering that a decision of an arbitrator is binding on the parties and may be enforced by the court, it is important to choose the right arbitrator. Unlike litigation, where judges are assigned, arbitration allows parties to choose a neutral decision-maker based on their specific needs. To ensure a fair and efficient process, the following factors should be carefully considered when selecting an arbitrator.
1. Expertise in the Relevant Field
An arbitrator should understand the subject of the dispute. They don’t have to be a lawyer; they can be anyone with relevant knowledge and experience. For example, construction disputes can be handled by arbitrators with engineering or architectural backgrounds.
2. Experience and Reputation
When choosing an arbitrator, consider their experience, reputation, and professional background. Check their past cases and involvement with recognized arbitration bodies like the ICC to assess their credibility and effectiveness.
3. Impartiality and Independence
An arbitrator must be fair and unbiased. They should not have any personal or professional ties to either party that could affect their judgment. Before accepting the role, they must reveal any possible conflicts of interest.
4. Availability and Case Management Skills
Make sure the arbitrator has enough time for the case. Some may be handling too many cases, causing delays. It’s best to check their availability to ensure a smooth and timely process.
5. Language and Jurisdictional Expertise
For international disputes, the arbitrator must be proficient in the relevant language(s) and familiar with the legal framework being applied.
6. Institutional vs. Ad Hoc Arbitration Considerations
In institutional arbitration, the arbitration body selects the arbitrator. In ad hoc arbitration, the parties choose their own arbitrator. It’s important to know which system applies.
There are various factors to consider in choosing an arbitrator. This is because a well-selected arbitrator contributes to a fair, efficient, and effective resolution of disputes. It is for these reasons that parties to a dispute must carefully consider the factors discussed in choosing an arbitrator.
