Lenzo and Reis, New Jersey Employment Attorneys, explain that arbitration is a form of alternative dispute resolution, and it is seen as being that of a private judicial resolution to some form of dispute rather than arguing your case in court. When you proceed with an arbitrational hearing, most times one arbitrator or a tribunal is utilized. The tribunal generally consists of the desired odd number of arbitrators which have been administered by that of a legal system. The odd number is solely for the purpose of eliminating the issue of the result being tied since no real decision would be able to be made in such a case.
Most times either three arbitrators or simply one arbitrator is used. As a result, the parties which are in a dispute have wilfully handed over their power to an arbitration or a tribunal to decide the outcome of their situation. However, it should be noted, that an arbitration process is widely considered to be the alternate method when compared to that of taking a matter to court. And, it is both binding and final as if it were in a court, therefore, there are no negotiations, conciliations or mediations.
Typically, the principles of arbitrators are quite simple and are briefly explained in the following. An arbitrator’s main purpose is to attain the most unbiased resolution to any situation without delays or expenses which are truly unnecessary. The parties which are involved should be granted the freedom of their agreement or disagreement in the way that their dispute should be resolved. In addition to what was already mentioned, any court of law should never get involved in any arbitration process.
Both tribunal members and arbitrators are generally appointed by one of three ways which are briefly illustrated in the following. Arbitrators as well as tribunal members are commonly appointed by the parties who are in dispute, this is done when they agree mutually or when each party appoints one arbitrator. They are also appointed by that of any existing tribunal member, this falls into the case where both parties have appointed one arbitrator and then one of the two arbitrators appoints a third member to join the tribunal. And, the third method of appointment is by that of an external party such as an institution, an individual or the court.
In addition, arbitrations are also classified into three categories which will be briefly described in the following. The first is that of commercial arbitrations, and just like its name, these arbitrators settle common disputes between two parties, or more so, two commercial enterprises. The second is that of consumer arbitration, these arbitrators aid in settling any dispute which may arise between a supplier of services or goods and a supplier. And last but not least, a law arbitration is that which involves the settling of employment disputes which are divided into an interest arbitration and a rights arbitration.
As we conclude our article, we have just looked at what is arbitration. We have also looked at the core principles of arbitration as well as how both tribunal members and arbitrators are appointed. And, we have also looked at the three categories of arbitrations and where they fit into society.