Arbitration is increasingly chosen over traditional court litigation because it provides a faster, private, and more efficient way to resolve disputes. At the heart of this process is the arbitrator — an impartial expert who conducts the proceedings and delivers a binding decision. This guide explains the role of an arbitrator, their powers and responsibilities, how they are appointed, and the skills they need. It also covers their typical work environments and key ethical standards, helping readers understand how arbitration works and why selecting the right arbitrator is crucial.
What is an Arbitrator?
An arbitrator is an impartial third-party expert appointed to settle disputes outside the courts. Acting like a private judge, they review evidence, apply relevant laws or rules, and issue a final, binding decision (called an “award”) that the parties must follow. Arbitrators oversee the hearing process to ensure fairness, and their decisions are usually enforceable by law, offering a quicker and more efficient alternative to traditional litigation.
Powers of an Arbitrator in an arbitration proceeding
Arbitrators are granted specific powers to manage the arbitration process effectively:
- Conduct hearings and proceedings: They can decide the schedule and manner of hearings.
- Order interim measures: Arbitrators can issue temporary relief to protect parties’ interests.
- Examine evidence: They have authority to review documents and call for evidence.
- Determine procedure: Arbitrators can choose rules of procedure, subject to the agreement of the parties.
- Issue awards: They can deliver final or partial awards that are binding on parties.
Duties of an Arbitrator in an arbitration
An arbitrator must act impartially and with integrity. Key duties include:
- Maintaining neutrality and avoiding conflicts of interest.
- Ensuring procedural fairness for all parties.
- Adhering to the agreed-upon arbitration rules.
- Issuing decisions based on evidence and applicable law.
- Keeping the proceedings confidential and transparent.
Selection criteria for an arbitrator
Choosing the right arbitrator is critical to a fair dispute resolution. Considerations include:
- Subject Matter Expertise: Parties often choose an arbitrator with knowledge of the relevant industry—for example, a construction expert for a construction-related dispute.
- Legal and Arbitration Experience: Many arbitrators are lawyers, retired judges, or legal scholars with prior experience in arbitration and dispute resolution.
- Impartiality and Ethics: An arbitrator must be fair, unbiased, and independent from the parties involved in the dispute.
- Certification and Training: Some arbitrators hold formal qualifications or training from recognised bodies, such as the Chartered Institute of Arbitrators (CIArb).
- Reputation and Professional Standing: An arbitrator’s credibility and professional reputation are key considerations when selecting them.
Skills required for Arbitrator
Arbitrators can earn a rewarding income, but the role demands significant effort and expertise. Key skills for a successful arbitrator include:
- Dispute resolution
- Critical thinking
- Effective interpersonal communication
- Confidence
- Strong reading and writing abilities
- Time management
- Active listening
In addition, arbitrators must have a solid understanding of the laws, regulations, and policies relevant to their field. For example, family arbitrators need in-depth knowledge of family law, while business arbitrators must stay current on business law and economic regulations.
Types of arbitrators
Arbitrators can be classified based on the type and complexity of disputes they handle. These include sole arbitrators, arbitration panels, presiding arbitrators, and emergency arbitrators, each playing a specific role to resolve disputes efficiently according to the needs of the case.
- Sole Arbitrator: A single arbitrator resolves the dispute. This is commonly used for simpler or less complex cases.
- Panel of Arbitrators (Tribunal): For more complex disputes, a panel of three or more arbitrators is appointed. Usually, each party selects one arbitrator, and the two appointed arbitrators then choose a presiding arbitrator.
- Presiding Arbitrator (Chairperson): The lead arbitrator in a panel who oversees proceedings, ensures compliance with arbitration rules, and guides the decision-making process.
- Emergency Arbitrator: Appointed in urgent situations to provide interim relief, such as injunctions, before the main arbitration process begins.
Where Arbitrators work
Arbitrators typically operate in the following settings:
- Corporate disputes: Resolving commercial conflicts between companies.
- Construction and infrastructure projects: Handling contractual disagreements.
- International trade disputes: Facilitating cross-border resolutions.
- Financial and banking sectors: Settling investment and contractual issues.
- Arbitrators may work independently, with arbitration institutions, or alongside law firms.
How to become an arbitrator
Becoming an arbitrator generally involves the following steps:
- Educational background: Law degree or expertise in the relevant field.
- Professional experience: Practical experience in legal practice or dispute resolution.
- Certification and training: Completing arbitration courses or programs.
- Networking: Joining arbitration institutions or professional associations.
- Financial support: Aspiring arbitrators can explore a Lawyer Loan or a Professional Loan to fund certification courses or training programs.
Principles for Arbitrators to follow
Arbitrators are expected to uphold fundamental principles in their work:
- Impartiality: Avoiding bias and conflicts of interest.
- Confidentiality: Maintaining secrecy of proceedings and awards.
- Efficiency: Managing proceedings in a timely manner.
- Fairness: Ensuring each party has an opportunity to present their case.
- Compliance: Adhering to the Arbitration and Conciliation Act and agreed rules.
Conclusion
Arbitrators play a pivotal role in the efficient and fair resolution of disputes outside traditional courts. By understanding their powers, duties, selection criteria, skills, and professional roles, individuals can navigate arbitration processes effectively.
