Arbitral Immunity

Arbitral Immunity

Arbitral immunity is a legal doctrine that protects arbitrators from being held liable for their actions and decisions made while performing their arbitration duties. This immunity is intended to encourage the independent and impartial resolution of disputes without the fear of subsequent legal repercussions.

Arbitral immunity typically applies to both the arbitrators and, in some jurisdictions, the arbitration organizations that administer arbitration proceedings. This means that arbitrators cannot be sued for errors in judgment, misconduct, or any decisions made in the course of their duties, provided they acted within the scope of their authority and in good faith. The underlying principle is that arbitrators must be free to consider the evidence and arguments presented without concern for possible litigation resulting from their rulings.

For example, if an arbitrator decides to admit certain evidence or makes a procedural ruling that one party believes is unfair, that party generally cannot sue the arbitrator for damages based on that decision. This immunity allows arbitrators to function effectively and without bias, knowing they are protected from personal liability as long as they operate within the bounds of their role.

Arbitral immunity is particularly important in the context of alternative dispute resolution (ADR) methods, such as arbitration, as it promotes the use of these processes over traditional court litigation. It helps maintain the integrity of arbitration as a viable means of resolving disputes by ensuring that arbitrators can perform their functions without undue influence or fear of repercussions.