Many business disputes are resolved through arbitration. Some companies prefer arbitration to litigation as a means of limiting costs. Arbitration clauses are included in many standard form contracts, with parties free to either agree to arbitration or walk away from the transaction. Businesses can also negotiate on the issue of arbitrating disagreements when entering into transactions, or can make a joint decision to arbitrate at the time when a conflict arises.
When you have agreed to arbitration, it is very important that you understand how to select an arbitrator to arbitrate your dispute. If the arbitration is binding, which it often is, the decision of the arbitrator is usually final and thus can have a profound impact on your rights. The process of selecting the arbitrator must be fair and you must make informed choices. An experienced San Diego arbitration lawyer at Sepahi Law Group, APC can help with the process and assist you throughout the arbitration. Call today to schedule a consultation and learn more.
How to Select an Arbitrator to Arbitrate Your Dispute?
The California Code of Civil procedure section 1281.6 addresses the issue of selecting an arbitrator to arbitrate your dispute. According to the relevant code provision, “if the arbitration agreement provides a method of appointing an arbitrator, that method shall be followed.” This means if the original contract specifies who will arbitrate or how to choose an arbitrator, you must follow the terms of this agreement.
If the agreement does not specify how to select an arbitrator to arbitrate your dispute, then it will be necessary for the parties having the disagreement to agree on an appropriate method of choosing an arbitrator. The parties should work hard to try to compromise and find someone to hear their case, as the longer it takes to agree on an arbitrator the more money they spend on legal fees and the more time they must spend living with the uncertainty of unresolved legal issues.
Sometimes, an agreement cannot be reached on how to select an arbitrator to arbitrate your dispute. In other situations, the method that was agreed upon fails or cannot be followed. If this happens, either party to the arbitration agreement can petition the court and ask the court to appoint a neutral arbitrator.
When asked to select an arbitrator, the court will nominate five people from a list of potential arbitrators. This list should be created by the parties to the arbitration working together; or should be obtained from a government agency that has a disinterested association with or concern for arbitration. When the court has provided a list, the parties have five days from the time they are notified to work together to jointly select an arbitrator. The parties don’t necessarily have to choose someone from the court’s list, unless they both agree they want to.
If five days have passed and no arbitrator has been chosen, the court will appoint one of its five nominees as the arbitrator. In bidding arbitration, those involved in the disagreement will thus have no choice but to abide by the decisions that this neutral third-party makes.
An experienced San Diego arbitration lawyer at Sepahi Law Group, APC can help with the process of choosing an arbitrator and making your case in arbitration. Call today to schedule a consultation and learn more.