Arbitrator's Appointment

Most arbitrations are conducted by a sole arbitrator or by a tribunal of 3 arbitrators. There are advantages in each system. If you have to decide which system to adopt it may be helpful to consider the following:

Arbitration by a sole arbitrator is likely to be quicker and less expensive than with a tribunal of 3 arbitrators. Only one set of arbitrator's fees is payable and it is usually easier to fix a timetable to suit the other commitments of one arbitrator rather than to have to fit in with the other commitments of 3 arbitrators.

A tribunal of 3 arbitrators is normally formed by each party appointing one arbitrator and the two party-appointed arbitrators appointing the third arbitrator. The third arbitrator normally chairs the tribunal. With this system one of the arbitrators is your choice and, if you think it is desirable, you may chose someone of your own nationality or with appropriate professional or business experience. However, party-appointed arbitrators are expected to be independent of the parties and to act impartially.

Appointing Bodies

A sole arbitrator is usually appointed jointly by the parties or, if the parties are unable to agree on a suitable individual by an independent third party or appointing body agreed between the parties.

The presiding arbitrator of a three-person tribunal is usually appointed by agreement between the two party-appointed arbitrators. If the party-appointed arbitrators are unable to agree on a suitable individual then the presiding arbitrator is usually appointed by an independent third party or appointing body agreed between the parties.

Presidents of many national or international professional or trade bodies are asked to appoint arbitrators from time to time. However, it is advisable to agree to appointment by an experienced appointing body, as it is more likely to be aware of the available expertise for any particular dispute and to have the expertise to ensure that valid appointments are made.

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