Arbitrator
When disagreements reach a point where discussion alone isn’t enough, parties may turn to a process that calls for a neutral decision. An arbitrator provides structure in those moments by listening to each side, considering the information presented, and bringing the dispute to a defined conclusion through arbitration. The role is grounded in independence and impartial judgment, offering an alternative to resolving disputes through the court system.
What Is an Arbitrator?
An arbitrator is an independent, impartial decision-maker selected by the parties or appointed by an administering organization to hear a dispute and render a determination (called an “award”). The arbitrator’s authority comes from the parties’ agreement to arbitrate, which may be set out in a contract or agreed to after a dispute arises.
Arbitrators do not represent either party. The arbitrator’s role is to review the parties’ presentations and reach a decision within the scope of the arbitration agreement and applicable law. Arbitrators sometimes serve as a sole arbitrator, and sometimes serve with other arbitrators on an arbitration “panel” or “tribunal”. Panels usually have three arbitrators and are used in very high-value or complex cases.
What Does an Arbitrator Do?
An arbitrator’s responsibilities vary depending on the nature of the dispute and the arbitration framework.
Sets procedural expectations and oversees how the arbitration unfolds, including scheduling and structure.
Examines written arguments, supporting documents, and evidence provided by the parties.
Leads hearings when required, ensuring each party has the opportunity to present its position.
Considers the legal and factual issues raised by each side in light of the agreed arbitration framework.
Provides a written decision, often referred to as an award, that resolves the dispute within the scope of the arbitration agreement.
The arbitrator’s role is more like a private judge than a mediator. Unlike processes such as early neutral evaluation (ENE), which provide advisory input, an arbitrator in a binding arbitration determines how the dispute should be resolved under the agreed process.
The Arbitrator’s Authority
The scope of an arbitrator’s authority depends on whether the arbitration is binding or nonbinding and on the terms of the arbitration agreement.
- In binding arbitration, the arbitrator’s decision is final and enforceable, subject to limited court review.
- In nonbinding arbitration, the arbitrator’s decision is advisory, and the parties retain the option to accept or reject the outcome.
In both settings, the arbitrator acts within the boundaries defined by the parties’ agreement and the applicable rules.
Qualifications and Background of Arbitrators
Arbitrators are often selected for their subject-matter expertise, professional background, or familiarity with the type of dispute at issue. Depending on the matter, an arbitrator may have experience in commercial transactions, technology-related disputes, employment matters, or other specialized areas.
Professional neutrality, independence, and judgment are central to the arbitrator’s role, regardless of the arbitrator’s underlying profession. Arbitrators might have committed to follow a canon of arbitrator ethics, such as the Chartered Institute of Arbitrators Code of Professional and Ethical Conduct for Members, or the ethics rules of an administering agency, such as the American Arbitration Association.
Arbitrator vs. Mediator
Although both arbitrators and mediators serve as neutrals within alternative dispute resolution, their roles differ in important ways.
| Aspect | Arbitrator | Mediator |
|---|---|---|
| Role in the Process | Evaluates the dispute and issues a decision | Facilitates communication and negotiation |
| Authority | Has authority to decide the dispute within the arbitration agreement | Does not impose a decision |
| Outcome | Results in a decision or award | Results in agreement only if parties choose |
| Party Control | Control shifts to the arbitrator | Parties retain control over the outcome |
How Arbitrators Fit Within Alternative Dispute Resolution (ADR)
Arbitrators play a specific role within the broader landscape of alternative dispute resolution (ADR). While mediation, conciliation, and early neutral evaluation emphasize communication or advisory input, arbitration centers on a neutral's decision-making.
Arbitration may be used on its own or alongside other ADR processes, depending on how the dispute-resolution framework is designed.
When Parties Work With an Arbitrator
Parties may work with an arbitrator when they want a neutral decision-maker outside of the court system. Arbitration is commonly used in commercial agreements, employment arrangements, and other contexts where parties agree in advance on how disputes will be handled.
Whether arbitration is binding or nonbinding, the arbitrator’s role remains focused on evaluating the dispute rather than facilitating negotiation.
Arbitrators in Private and Court-Connected Settings
Arbitrators may serve in private arbitrations administered by organizations such as the American Arbitration Association (AAA) or in proceedings agreed to directly by the parties. In some jurisdictions, arbitration is also offered through government agencies or court-connected programs, with procedures defined by statute or court rules.
The structure of the arbitration, the arbitrator’s authority, and available next steps vary depending on the forum and the governing agreement.
Considering Your Options
An arbitrator serves a distinct function within alternative dispute resolution by providing a neutral evaluation and decision. If you are exploring arbitration as part of your broader dispute-resolution options, you may wish to learn more about how arbitrators work alongside processes such as mediation, arbitration, and dispute-prevention and management strategies.