- Outsourcing Law - http://www.outsourcing-law.com -
Arbitration Administrators
Arbitration does not automatically involve administration by a neutral third-party organization. Selection of the arbitration administrator will have a significant impact on the fairness, neutrality, speed, compliance with law and contract and costs of achieving an arbitrated resolution of a commercial dispute. Wise selection of arbitration administrators assures the best chance of an appropriate outcome in arbitration.
Arbitration administrators perform functions that can only be done by neutrals with authority to require the parties to follow some form of rules in alternative dispute resolution (“ADR”) that does not go to the courts. The administration of an arbitration involves the administrator at every step, including:
Some arbitrations occur without any administration by a neutral organization. To some extent, lack of administration can result in unilateral nullification of the arbitral process, resulting in confusion, delays, additional costs and frustration of justice.
In the selection of an arbitration administrator, the parties need to evaluate the administrator’s reputation for neutrality, diligence and effectiveness. The rules that define the roles, and the availability of agreed exceptions to the rules, make a fair and level playing field for dispute resolution.
The importance of selecting an appropriate administrator is seen in international disputes. In a few countries, the local government is highly involved behind the scenes in the oversight of arbitration administrators, which could result in favoritism for local parties.
Article printed from Outsourcing Law: http://www.outsourcing-law.com
URL to article: http://www.outsourcing-law.com/arbitration-administrators/
Click here to print.
Copyright © 2012 Outsourcing Law. All rights reserved.