Four factors to consider when selecting an arbitrator

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One major difference between arbitration and litigation is that parties to an arbitration participate in the selection of the tribunal.

This is usually seen as a significant advantage of arbitration. Parties are permitted to propose candidates to act as a sole arbitrator or, in the case of a three-member tribunal, each party is permitted to nominate one arbitrator and the two party-appointed arbitrators appoint the chairman.

Selecting an arbitrator may be one of the most crucial decisions a party will take. There is little recourse against an arbitral award and no right of appeal, so getting a tribunal capable of understanding the issues is important. Furthermore, arbitrations are conducted without strict rules of procedure, so an arbitrator’s role is not only to render an enforceable award but to ensure that the process is expeditious, fair and cost effective. An arbitration may very well turn on the quality of the arbitrator and for this reason choosing arbitrators is a critical phase of the process…

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