APPOINTMENT OF ARBITRATORS - THE VALUE OF TECHNICAL EXPERTISE
One of the features that distinguishes arbitration from litigation in the courts is the flexibility it offers to parties when it comes to choosing decision makers in the event of a dispute. This means that parties can select arbitrators with expertise relevant to the matters in dispute. This may be of particular value in disputes of a technical nature such as complex finance, construction and pharmaceuticals cases. Indeed, in many such cases, the ability to appoint decision makers with particular expertise may well be the deciding factor in parties opting for arbitration over litigation.
The value of such expertise to users is reflected in the emergence of various specialist arbitration centres as well as arbitration rules that have been designed to cater to industry-specific disputes.
Technical expertise of arbitrators
Appointing an arbitrator with technical expertise in the matters at issue fosters confidence in the decision-making abilities of the arbitrator. Having arbitrators with expertise can also significantly reduce the time and cost spent in explaining the matters in dispute. Such arbitrators should be able to narrow down the issues in dispute and will be better able to understand and assess both witnesses of fact and party-appointed expert witnesses.
There may be as much or even more value in an arbitrator understanding and applying the substance of the law and the legal process as in having industry-specific expertise. Indeed, in practice it is rare for arbitrators with no legal background at all to be appointed in big commercial cases.
Jan-Mar 2023 issue
P.R.I.M.E. Finance