Independent
Independent
Independent
ARBITRATOR's QUALIFICATIONS
It is common for a contract clause to require that one or more of the arbitrators have certain specified qualifications. In drafting
such a provision, care should be taken that such necessary qualifications not be too detailed and specific since a highly detailed
list of required qualifications can significantly narrow the number of available, competent and qualified arbitrators.
Specification of arbitrator qualifications often works best in the context of a three-arbitrator panel since it is possible in that
setting to require that one of the panelists have a certain technical expertise without limiting the entire panel to so narrow an area
of experience. In this way, it is possible to ensure that the desired technical expertise is represented on the panel while at the same
time assuring that the chair of the panel has extensive experience in the entire arbitration process.
If the arbitration is to be conducted by a sole arbitrator, the contract clause might provide that the arbitrator must be:
A retired judge from a particular court; or
A lawyer with 10 years of active practice in a specified area, such as construction or computer technology.
If the arbitration is to be handled by a three-arbitrator panel, the contract clause might provide:
That the Chair be an attorney with at least 20 years of active litigation experience; or
That the Chair be a retired judge from a particular court; or
That one of the wing arbitrators be an expert in an area such as construction or be an accountant or a particular type of engineer;
or
That the Chair must previously have served as Chair or sole arbitrator in at least 10 arbitrations where an award was rendered
following a hearing on the merits.
Note: The foregoing are just examples. The point is that the qualifications of the arbitrator(s) should be considered at the time
when the contract clause is drafted.
PARTY-APPOINTED ARBITRATORS
It is a common practice for each side to appoint an arbitrator and for the two party-appointed arbitrators to then appoint the Chair
of the panel.The party-appointed arbitrators "shall be neutral and independent of the appointing Party unless the Parties have
agreed that they shall be non-neutral." Set forth below is a clause that effectively provides for party-appointed arbitrators:
Within 15 days after the commencement of arbitration, each party shall select one person to act as arbitrator, and the two so
selected shall select a third arbitrator within 30 days of the commencement of the arbitration. If the arbitrators selected by the
parties are unable or fail to agree upon the third arbitrator within the allotted time, the third arbitrator shall be appointed by Court.
All arbitrators shall serve as neutral, independent and impartial arbitrators.
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