Party-Appointed Arbitrator
A Party-Appointed Arbitrator is an arbitrator selected by one of the parties involved in a dispute to participate in the arbitration process. Arbitration is a form of alternative dispute resolution (ADR) where parties agree to resolve their conflicts outside of court, and it often involves a panel of arbitrators.
In many arbitration agreements, each party may have the right to appoint their own arbitrator, leading to a tribunal typically composed of one or three arbitrators. The Party-Appointed Arbitrator is responsible for representing the interests of the party that appointed them and contributes to the decision-making process regarding the resolution of the dispute.
For example, in a commercial arbitration scenario, if two companies are in dispute over a contract, each company may appoint its own arbitrator to ensure that their perspectives and interests are adequately represented. The appointed arbitrators will then work alongside any neutral arbitrators to evaluate the evidence presented, hear testimonies, and ultimately make binding decisions on the matter.
The selection of a Party-Appointed Arbitrator is crucial, as it can significantly influence the arbitration outcome, given that arbitrators often have specialized knowledge of the industry or subject matter in dispute. The impartiality and qualifications of these arbitrators should be carefully considered to uphold the integrity of the arbitration process.
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