General principles of arbitration
General principles of arbitration are as follows:
The object of arbitration is to obtain a fair resolution of disputes by an impartial third party without unnecessary expense or delay.
Parties should be free to agree how their disputes are resolved, subject only to such safeguards as are necessary in the public interest.
Courts should not interfere.
Arbitrators, or Tribunal members, are commonly appointed by one of three means:
1. Directly by the disputing parties (by mutual agreement, or by each party appointing one arbitrator)
2. By existing tribunal members (For example, each side appoints one arbitrator and then the arbitrators appoint a third)
3. By an external party (For example, the court or an individual or institution nominated by the parties)
Arbitration, while being nicknamed the ‘businessman’s method of resolving disputes’, is governed by state and federal law. Most states have provisions in their civil practice rules for arbitration. These provide a basic template for the arbitration as well as procedures for confirmation of an arbitrator’s award (the document that gives and explains the decision of an arbitrator), a procedure that gives an award the force and effect of a judgment after a trial in a court. Many states have adopted the Uniform Arbitration Act, although some states have specific and individual rules for arbitration.
The object of arbitration is to obtain a fair resolution of disputes by an impartial third party without unnecessary expense or delay.
Parties should be free to agree how their disputes are resolved, subject only to such safeguards as are necessary in the public interest.
Courts should not interfere.
Arbitrators, or Tribunal members, are commonly appointed by one of three means:
1. Directly by the disputing parties (by mutual agreement, or by each party appointing one arbitrator)
2. By existing tribunal members (For example, each side appoints one arbitrator and then the arbitrators appoint a third)
3. By an external party (For example, the court or an individual or institution nominated by the parties)
Arbitration, while being nicknamed the ‘businessman’s method of resolving disputes’, is governed by state and federal law. Most states have provisions in their civil practice rules for arbitration. These provide a basic template for the arbitration as well as procedures for confirmation of an arbitrator’s award (the document that gives and explains the decision of an arbitrator), a procedure that gives an award the force and effect of a judgment after a trial in a court. Many states have adopted the Uniform Arbitration Act, although some states have specific and individual rules for arbitration.
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