​Selecting Between One and Three Arbitrators

Selecting Between One and Three Arbitrators
 
When parties incorporate an arbitration provision in a contract, they must determine whether to choose one or three arbitrators. This is a critical choice that needs a thorough evaluation of several issues. Arbitration is meant to be a more efficient, speedier, and less costly method of settling disputes. On the other hand, the choice of one or three arbitrators may considerably influence the efficiency, cost, and result of the arbitration process.
 
 
The first aspect of evaluating is the dispute's intricacy. A complicated legal or technical issue may need the appointment of three arbitrators to distribute the effort and give diverse points of view on the topic. This may lead to a more thorough examination of the concerns, culminating in a well-informed and sound choice. If the disagreement is simple, choosing a single arbitrator may be sufficient.
 
Money at risk is the second issue to consider. The expenses of choosing one or three arbitrators must be weighed against the amount at risk by the parties. If the sum is modest, selecting a single arbitrator may be less expensive than a panel of three arbitrators. Yet, if the stakes are high, appointing three arbitrators to guarantee a fair and unbiased conclusion may be justified.
 
The preferences of the parties are the third aspect to examine. The parties' choices for the number of arbitrators may vary. A single arbitrator may be preferred if one side feels a panel of three arbitrators would be prejudiced against them. It is critical to carefully analyze the parties' views and choose the number of arbitrators that is most agreeable to all parties.
 
The fourth consideration is time limits. Since there is just one person to confer with and make judgments with, appointing a single arbitrator may result in a faster settlement of the issue. On the other hand, a panel of three arbitrators may take longer to make a ruling since they will need to communicate and achieve an agreement. While deciding on the number of arbitrators, parties must consider the time limits of the arbitration procedure.
 
To summarize, deciding whether to appoint one or three arbitrators is a key decision that must consider several considerations, including the complexity of the dispute, the amount at risk, the parties' preferences, and time restrictions. The number of arbitrators selected may considerably influence the arbitration procedure's efficiency, cost, and result. Consequently, parties must carefully consider the individual circumstances of the dispute, as well as their requirements and preferences, to make an educated choice that will result in a fair and efficient arbitration procedure.