The arbitrator is
similar in many ways to a judge in a case, although the scope of authority of
the arbitrator is much less encompassing. In general the arbitrator will
convene the parties, manage the arbitration hearing, participate in the
questioning of the parties and, after all information is collected, write a
decision or an award on the information provided. As a form of Alternative
Dispute Resolution or ADR used in everything from labor relations through to
consumer complaint resolution the arbitrator's role and function always remains
the same although the specific details of the style and format may vary
slightly.
The arbitrator
will be selected by the parties and there must be agreement on the individual
or the individuals that will sit on the arbitration panel. Typically in court
ordered hearings the arbitrators are provided on a list and the parties and
their representatives choose from one or more of the names on that short list.
In voluntary or non court ordered hearings a wider scope of arbitrators may be
considered. The arbitrator, unlike a judge, usually is considered for a
specific hearing because of his or her subject matter expertise. Some
arbitrators may have a law background while others may be specifically trained
as arbitrators without being lawyers, judges or other legal experts. The
requirement for legal background is often a function of the type of hearing.
Usually in labor,
contract or commercial types of arbitrated hearings a panel of arbitrators is
used as opposed to just a single individual. This can provide a greater range
of expertise to sit on the panel. The arbitrators on the panel are bound by the
same ethical and professional guidelines as a single arbitrator and, as part of
those standards; they cannot have a conflict of interest with any party to the
case. The arbitrator must not have any vested interest in the outcome of the
arbitration and should not have a business, professional or personal
relationship with the parties to the hearing. Any prior working relationship
with representatives should also be disclosed immediately and careful
consideration given to the perception of bias or favoritism towards any party
to the hearing. This is usually the key point in overturning an award and can
cause serious professional ramifications for the arbitrator if disclosure is
not provided prior to the hearing.
The arbitrator
will convene and set the schedule. Most single issue hearings are relatively
short in duration, but during the hearing the arbitrator acts as the meeting facilitator
and coordinator. The arbitrator sets all the rules of procedures, admission of
evidence, witnesses, agenda and manages the communication and emotional levels
in the room. Unlike a mediation the arbitrator does not attempt to get the
parties to reach common ground and settlement; he or she simply gathers
information used to reach an arbitrated decision or award.
The arbitrator
can ask questions directly to the parties during the appropriate time. This is
typically after the opening statements and during the general questioning and
information exchange. Some arbitrators may prefer a more formal structured
question and answer session while others may be less formal and structured. The
arbitrator will often take notes or there may be a recording made by the
arbitrator or a court reporter during the session that is used strictly by the
arbitrator in writing the decision. In most hearings there are no options for
any other types of recordings to be produced, but this can vary based on the
agreement of the party or the standards for arbitrated hearings set forth by
the state or country in which the hearing occurs.
After the hearing
the arbitrator will have a set number of days to produce the award, sometimes
referred to as the decision. This can be either binding or non-binding
depending on the agreed upon terms prior to the commencement of the hearing. In
the event of an agreement for a binding arbitration hearing the arbitrator's
decision is final and cannot be appealed through the court system expect in
very specific cases.
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