When it comes to arbitration agreements, there are a number of factors that should come to mind before you choose the right institutions for the arbitration process. Ideally, it would be assumed that you need to have a sound understanding of common legal concepts of litigation settlement, lender liability, malpractice and patent disputes. These are some of the common cases that require a mediator to settle the dispute. The success of both local and international arbitration depends on whether you are able to find the right institution for the arbitration process. However, international arbitration has additional logistical challenges which are why it takes time for cases to be heard and settled in international arbitration. Since there are various dispute resolution mechanisms, it is always a good idea to exhaust all the other channels that could offer a long lasting solution and arbitration is seen as one of the methods that can offer reprieve in both personal and commercial litigation. Considering the sensitivity of arbitration cases especially in international arbitration, due diligence is required before hiring an arbitrator. You need to keep in mind that the cost of arbitration is on the higher side regardless of the outcome of the dispute. The situation is even more dire in international arbitration as most people feel the need to attend the sessions in person and not via any other means. The next time you are looking to settle a long time dispute, below are some of the things to consider when choosing an arbitrator in both local and internal arbitration processes.
Longevity of the Institution
There are many indications that arbitration takes time especially in the case of international arbitration. This means that when choosing the arbitrator; choose an institution that will be in existence for the entire period of the dispute resolution process. Of course there is no telling if the arbitrator will be available for a prolonged period of time. However, there are certain institutions that have been in existence and also have a proven track record in arbitration matters. If an institution is not able to resolve the dispute up to its completion, there are other issues that emerge. For example, failure to resolve the dispute means that the process of appointing a tribunal to deal with the case cannot be implemented. The implementation of an appointment of a tribunal can only happen if the arbitration laws of the country expressly allow that to happen. It is for these reasons that a business and individuals should exercise caution before choosing an arbitrator. Choosing a new institution that has not been tried and tested could prove to be a costly affair. The good news is that there are many institutions that can guarantee that the entire process will be a success as long as you know what to look out for before making your choice.
The Rules that the Arbitrator Applies
Another key factor that should be considered when choosing an arbitrator is the rules that the arbitrator applies. The reason why rules are necessary is because they are the ones that make the entire process legally binding. The problem is that the rules do not apply in uniformity across different institutions but rather vary from one institution to the other. The most basic rules outline the terms of engagement between the arbitrator and the parties involved in the dispute. The whole point of having such rules is so as to ensure that one of the parties does not sabotage the arbitration process. Many of the recognized bodies involved in arbitration take this approach although there are minor differences in their respective rules. Apart from this, there are still many institutions that tend to take a common approach in terms of the rules especially institutions under international recognized bodies. Although there is no really telling how some of these rules will affect the arbitration process, it is always a good idea to check for common traps that could end up disadvantaging you in the process. With the right information in mind, choosing an arbitrator should not come as a challenge. Do some research about different bodies and institution that are involved in local and international arbitration before making your choice.