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The Selection of Arbitrators
An arbitrator is a third party that has been appointed by disputing parties to resolve a dispute. The appointed individual that acts as an arbitrator should possess expertise in handling arbitration processes and disputes. An arbitrator’s function is close to that of a judge in that he or she must listen to the parties’ testimony and make a determination in order to make an award. Although there are no clear stipulations regarding the required qualifications in fulfilling the duty of an arbitrator, their extensive plays a very important role. This article will introduce the necessary factors that need to be taken into consideration when selecting an arbitrator to mediate a dispute.
1. Choose an arbitrator with extensive expertise and knowledge of the legal system.
As an arbitral award must be supported by a strong reason and arguments, the contracts related to international trade transactions are inevitably related to the law. Therefore, it is important to select an arbitrator with extensive knowledge of the legal background.
In addition, it is also important for the arbitrator to have extensive experience in disputes. For example, disputes in engineering or the petroleum and natural gas industries require specialized knowledge. Therefore, to obtain satisfactory results and avoid mistakes, the selected arbitrator should have the required expertise and understanding of the disputed industry sector they will be resolving.
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2. Choose an arbitrator that is capable of handling the caseload.
Also, always keep in mind to select an arbitrator that is capable of handling the caseload. This advice stems from the fact that a reputable or highly popular arbitrator would be in demand by various parties and may require scheduling several months in advance. Therefore, choosing an arbitrator with a backlog of caseloads may lead to time conflicts and possible delays, and thus, may adversely affect the parties who wish to resolve the dispute quickly. Thus, it is a very important factor to consider when an appointment of an arbitrator who is capable of quickly handling caseloads must be made.
However, if it concerns a dispute that requires specialized expertise, it would make more sense to choose an arbitrator who is a specialist in that particular industry dispute than to select an arbitrator who can resolve disputes quickly.
3. Choose arbitrators who are known for their impartiality.
A good arbitrator must be independent from the disputing parties. International arbitration rules state that the arbitrator should not have a business, family, or social relationship with any of the disputing parties and must not benefit or experience losses substantially from the outcome of the dispute.
4. Also, take into consideration the arbitrator’s nationality.
Arbitration centers, such as the Dubai International Financial Centre and the London Court of International Arbitration (DIFC-LCIA), stipulates that disputes in arbitration cases that involve parties of different nationalities must consist of an arbitrator or president of the court, cannot be of the same nationality as either of the disputing parties. However, in this regard, the parties are permitted to agree in writing in deciding otherwise. The rationale behind this rule is to prevent actual or perceived bias in the proceedings of the arbitration process.
If three arbitrators are appointed from the disputing parties, they may consist of the same nationality as the appointing party. Choosing an arbitrator of the same nationality is often justifiable as at least one of the panel’s arbitrators would have a good understanding of the parties’ culture, business practices, and traditions.
5. Choose arbitrators that handle people well.
This is based on the fact that arbitrators have to communicate and interact with several parties or individuals regularly. Therefore, communication skills are important qualities that an arbitrator has to possess. Additionally, international arbitration today covers a broader range of issues and a wider variety of information. Dealing with multiple parties and different nationalities only makes the job more difficult. For this reason, the appointed arbitrator and the president of the court should be able to handle and manage people well.
Sources:
- https://www.international-arbitration-attorney.com/wp-content/uploads/arbitrationlaw0405202743129.pdf
- https://www.sidley.com/~/media/publications/texas-lawyer_selecting-the-arbitrator.pdf
- https://www.tamimi.com/law-update-articles/four-factors-to-consider-when-selecting-an-arbitrator/
