Single arbitrator: Overview, definition, and example
What is a single arbitrator?
A single arbitrator refers to an individual who is appointed to resolve a dispute through arbitration, a form of alternative dispute resolution (ADR), rather than a court trial. The single arbitrator acts as the neutral decision-maker in the dispute, reviewing evidence, hearing arguments from the parties involved, and ultimately issuing a binding decision or award. Arbitration is commonly used in business contracts, employment agreements, and other legal disputes where the parties prefer a quicker, more confidential, and potentially less formal resolution process than traditional litigation.
In contrast to a panel of arbitrators, where multiple arbitrators may decide a case, a single arbitrator serves alone and is responsible for making the final determination.
Why is a single arbitrator important?
A single arbitrator is important because it offers several advantages in the resolution of disputes, particularly in terms of efficiency and cost-effectiveness. By having only one arbitrator, the arbitration process can be faster and less expensive compared to a panel of arbitrators, as there are fewer people to coordinate with, and administrative costs are often reduced.
Additionally, a single arbitrator brings consistency and clarity to the decision-making process, as the case is decided by one individual who has complete control over the proceedings and the final award. This can simplify the resolution process, especially in cases that do not involve complex issues or require a diverse range of expertise.
Understanding a single arbitrator through an example
In a business contract between two companies, the parties agree that any dispute arising out of the contract will be resolved through arbitration by a single arbitrator. The dispute involves a disagreement over the interpretation of certain contract terms. The parties submit their arguments and supporting documents to the arbitrator, who reviews the information, holds a hearing, and issues a binding decision based on the contract terms and applicable law.
In another example, an employment contract includes a clause that requires disputes between the employer and employee to be settled by arbitration. The parties agree that a single arbitrator will be appointed to resolve any employment-related disputes, such as claims of wrongful termination or discrimination. After hearing both sides, the arbitrator issues a ruling that both parties must abide by, resolving the issue without going to court.
An example of single arbitrator clause
Here’s how this type of clause might appear in a contract:
“Any dispute, controversy, or claim arising out of or relating to this Agreement shall be resolved by arbitration conducted by a single arbitrator. The arbitrator shall be appointed by mutual agreement of the parties, or if the parties cannot agree, by the relevant arbitration institution. The arbitrator's decision shall be final and binding on both parties.”
Conclusion
A single arbitrator serves as the sole decision-maker in an arbitration process, offering a quicker, more efficient, and cost-effective alternative to litigation. This method is particularly beneficial when the parties seek a streamlined resolution to disputes, without the complexities and costs associated with a panel of arbitrators. Whether in business agreements, employment contracts, or other legal matters, using a single arbitrator can simplify the dispute resolution process and provide a binding outcome.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.