Who is an Arbitrator? Role, Responsibilities, and Importance

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Author- admin
Date:May 27, 2022

This article delves into the question, “Who is an arbitrator?” and explores their role, responsibilities, and importance in the arbitration process.

Arbitration has become a preferred method for resolving disputes in business and legal settings due to its efficiency and flexibility. Central to the arbitration process is the arbitrator, a neutral party responsible for delivering a fair and binding resolution.

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Who is an Arbitrator?

An arbitrator is an impartial individual appointed to resolve disputes between parties in an arbitration proceeding. They act as a judge in an informal setting, hearing arguments, examining evidence, and issuing a binding decision known as an arbitral award.

Parties often choose arbitrators based on their expertise in the subject matter of the dispute, ensuring a fair and informed resolution

The disputing parties or an arbitration institution privately select arbitrators, unlike traditional court judges They play a crucial role in alternative dispute resolution (ADR), offering a faster and more cost-effective method than litigation.

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Role of an Arbitrator

The arbitrator’s primary role is to facilitate the resolution of disputes by maintaining neutrality and ensuring procedural fairness. Below are key aspects of their role:

1. Neutral Decision-Maker
   Arbitrators serve as independent and unbiased decision-makers who are entrusted to resolve disputes without favoring any party.
2. Administrator of Arbitration Rules
   They ensure that the arbitration proceedings adhere to the rules and guidelines agreed upon by the parties, such as institutional rules (e.g., ICC or LCIA) or ad hoc arbitration rules.
3. Evidence Evaluator
   Arbitrators assess the evidence presented by both parties to understand the facts of the dispute and make an informed decision.
4. Legal and Procedural Guide
   They guide the parties through arbitration procedures, ensuring clarity in processes like hearings, document submissions, and timelines.
5. Award Issuer
   The ultimate responsibility of an arbitrator is to issue an arbitral award, which is a binding decision that resolves the dispute.

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Responsibilities of an Arbitrator

An arbitrator’s responsibilities go beyond merely hearing the case. Their duties ensure that arbitration remains a credible and efficient alternative to litigation.

1. Ensuring Impartiality
   • Arbitrators must disclose any potential conflicts of interest before accepting their appointment.
   • They must remain neutral throughout the arbitration process.
2. Maintaining Confidentiality
   • Arbitration proceedings are private, and arbitrators are bound to keep all information confidential.
3. Managing Proceedings
   • Arbitrators must manage hearings, evidence submissions, and interactions between the parties to ensure a smooth and fair process.
4. Providing Clear Communication
   • They must communicate decisions and procedural updates effectively to all parties involved.
5. Issuing a Reasoned Decision
   • Arbitrators are required to provide a detailed explanation of their award, outlining the reasoning behind their decision.

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Importance of an Arbitrator

Arbitrators are integral to the arbitration process and play a significant role in resolving disputes efficiently and fairly.

1. Efficiency in Dispute Resolution
   • Arbitrators ensure that disputes are resolved swiftly compared to traditional court proceedings.
2. Specialized Expertise
   • Many arbitrators may possess specialized knowledge in fields like construction, finance, or intellectual property, which helps in resolving complex disputes.
3. Cost-Effectiveness
   • Arbitration, guided by an experienced arbitrator, often costs less than prolonged court cases.
4. Flexibility
   • Arbitrators adapt to flexible rules and schedules, making arbitration proceedings more convenient for the parties involved.
5. Finality of Decisions
   • Arbitral awards are binding, reducing the likelihood of prolonged appeals and ensuring closure.

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How are Arbitrators Appointed?

Arbitrators are appointed through a mutual agreement between the disputing parties or by an arbitration institution. The appointment process typically includes:

1. Mutual Selection
   Parties agree on an arbitrator with relevant expertise and reputation.
2. Institutional Appointment
   When parties cannot agree, institutions handling Arbitration disputes may appoint arbitrators.
3. Court’s appointment
   When there is arbitration agreement or agreement containing arbitration clause, any party may approach the court for appointment of Arbitrator. Under Indian Arbitration Law, the High Court & Supreme Court has power to appoint Arbitrator.

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Qualities of a Good Arbitrator

To effectively resolve disputes, arbitrators should possess the following qualities:

1. Impartiality and Integrity
   Arbitrators must be free from bias and conflicts of interest.
2. Expertise
   In-depth knowledge of the relevant field is essential for making informed decisions.
3. Effective Communication
   They should clearly articulate procedural requirements and reasoning for decisions.
4. Analytical Skills
   Strong analytical abilities help arbitrators assess evidence and arguments objectively.
5. Patience and Professionalism
   Arbitrators must handle complex cases calmly and professionally.

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Challenges Faced by Arbitrators

Despite their importance, arbitrators face several challenges, such as:

1. Maintaining Neutrality
   Ensuring impartiality in emotionally charged disputes can be challenging.
2. Handling Complex Cases
   Arbitrators often deal with intricate legal and technical matters that require extensive expertise.
3. Adhering to Tight Timelines
   Balancing the need for thorough analysis with the demand for quick resolutions is often difficult.
4. Dealing with Non-Cooperative Parties
   Some parties may delay proceedings or fail to comply with procedural requirements.

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Conclusion

An arbitrator plays a pivotal role in resolving disputes through arbitration. Their expertise, neutrality, and ability to deliver binding decisions make them indispensable in alternative dispute resolution. By understanding the role, responsibilities, and importance of arbitrators, businesses and individuals can make informed decisions when opting for arbitration to settle disputes.

When choosing an arbitrator, consider their qualifications, experience, and reputation to ensure a fair and effective resolution process. With the growing preference for arbitration over litigation, the significance of arbitrators in modern dispute resolution continues to rise.