Arbitration is a form of alternative dispute resolution (ADR) in which a neutral third party, an arbitrator, resolves disputes between parties outside the conventional court system. Arbitration is commonly applied in commercial disputes, labor disputes, international trade, and construction disputes. Arbitration is usually favored for its efficiency, confidentiality, and flexibility.
The success of arbitration relies on the arbitrator's skill. Their qualifications are to be able to resolve disputes justly, interpret laws correctly, and give logical arguments. It gives you information on what qualifications, education, career opportunities and certifications, and certain skills and industry-specific requirements, would make you an expert arbitrator.
Also, Learn How to Become an Arbitrator in India
Definition of an Arbitrator
An arbitrator is a neutral party that facilitates the settlement of disputes by examining evidence, hearing arguments, and rendering a legally enforceable verdict or advisory judgment, based on the arbitration agreement.
An arbitrator is not a judge; it operates on the consent of the parties to the dispute, rather than the state. The parties usually select arbitrators based on their experience so that they have industry-specific knowledge to settle complex disputes.
Arbitrators play a key role in establishing trust in ADR processes. They need to have legal acumen, analytical skills, and high ethical standards to conduct impartial proceedings.
Learn the Key Differences between Arbitrator vs Lawyer
Qualifications Required to Become an Arbitrator
To work effectively as an arbitrator, the individual must be qualified academically, professionally, and in terms of ethical standards. Even though arbitration regulations differ from country to country, most arbitration associations adhere to universal qualifications.
1. Academic Qualifications
There is no formal educational qualification for arbitrators, but a relevant academic qualification adds credibility. A law degree is useful, but technical and business professionals can also qualify through certification and experience in the industry.
Some of the preferred degrees are:
Law Degree (LL.B. or J.D.): A legal background is useful in understanding arbitration laws, contract interpretation, and procedural rules.
Business Administration (MBA): Most commercial cases need arbitrators with corporate and financial expertise.
Finance and Economics: Arbitrators dealing with investment, trade, or financial cases are advantaged by a degree in economics or finance.
International Relations: Staff, handling border cases, needs to be familiar with international laws and treaties.
2. Professional Experience
Arbitration significantly depends on the experience of its participants. The majority of institutions mandate that arbitrators must possess a solid track record of conflict resolution expertise or specialize in a particular domain. First-hand experience in dispute resolution, contract interpretation, and agreement enforcement assures arbitrators to perform arbitration proceedings effectively.
Certain common experience requirements are:
Legal Professionals: Lawyers, retired judges, and legal advisors tend to become arbitrators because of their experience in dispute resolution.
Industry Experts: 10-15 years of professional experience in fields such as finance, construction, energy, or intellectual property might make them eligible for arbitration.
Negotiators and Mediators: Mediation, conciliation, or negotiation experience can help them move to arbitration positions.
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3. Certifications and Training
Several arbitration bodies provide specialized education and certification schemes to assist experts in becoming licensed arbitrators. Such certifications enhance the credibility of an arbitrator and offer experience with the new developments in laws and methods in arbitration.
Among the best known certifications are:
A. National Arbitration Certifications:
Chartered Institute of Arbitrators (CIArb) – Provides organized courses like Associate (ACIArb), Member (MCIArb), and Fellow (FCIArb).
American Arbitration Association (AAA) – Offers training in domestic and international arbitration.
Indian Council of Arbitration (ICA) – Certifies arbitrators for resolving disputes in India.
B. International Arbitration Certifications:
International Chamber of Commerce (ICC) – Offers training in international commercial arbitration.
London Court of International Arbitration (LCIA) – Provides higher-level courses on arbitration law and practice.
Singapore International Arbitration Centre (SIAC) – Offers training specific to international commercial disputes.
Skills Needed to Be a Good Arbitrator
To be a good arbitrator, one should have the following skills:
1. Impartiality and Unbiased Judgment: Academic arbitrators must maintain absolutely neutral positions during proceedings. The process becomes ineffective as soon as participants develop conflicting interests. The trust in arbitration proceedings remains safeguarded because arbitrators need to maintain objective viewpoints.
2. Strong Legal and Analytical Skills: Non-lawyers must understand arbitration law and procedural rules and contract interpretation to be effective. Arbitrators use their analytical skills to examine evidence and enforce applicable legal principles in a case.
3. Superb Communication and Negotiation Skills: The process of arbitration requires successful communication with all involved parties in addition to legal explanation abilities and the ability to create well-developed arbitration awards. Professional dispute settlement using negotiation skills helps parties find peaceful agreements.
4. Decision-Making Capability: Arbitrators should maintain confidence when making sound decisions with ethical foundations. The delivery of delayed or nervous decisions peaks arbitral integrity into doubt.
5. Confidentiality and Professional Standards: The confidentiality standards for arbitrators must be exceptionally high. Unauthorized persons must not receive access to private case information. Maintaining high ethical standards is essential for earning credibility.
6. Knowledge of International Arbitration Laws: For cross-border dispute arbitrators, there is a need to understand treaties like the New York Convention and UNCITRAL Model Law.
Also, Get to Know Which are the Key Negotiation Skills in ADR?
Industry-Specific Arbitrator Requirements
Industry expert arbitrators bring sophisticated expertise, resulting in successful resolution of complex disputes. A few industries demand expert arbitrators for specific fields.
Construction Arbitration: Requires special knowledge in engineering contracts, project delays, and cost disagreements.
Financial Arbitration: Bankers, investors, or accountants handle financial sector conflicts.
International Trade Arbitration: Requires understanding of international trade agreements and legislation.
Also, Checkout What is the Role of NGOs in Alternative Dispute Resolution
Summing Up
It takes a mix of education, professional experience, and specialized training to become an arbitrator. A legal background helps but professionals from other walks of life can qualify based on industry knowledge and certification programs.
Strong decision-making, communication, and analytical skills are needed for an arbitrator. Specialized knowledge of the industry adds to the effectiveness of an arbitrator in settling disputes.
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Arbitrator Qualifications: FAQs
Q1. What are the qualifications to work as an arbitrator?
A law degree is useful but not necessary. Industry experience, arbitration certifications, and effective decision-making are essential.
Q2. Are arbitrators required to be lawyers?
No, but they should have expertise in arbitration laws, contracts, and conflict resolution. Industry practitioners with related knowledge can also be qualified.
Q3. What sectors need specialized arbitrators?
Fields such as construction, finance, international trade, and intellectual property need sector-specific expertise arbitrators.
Q4. How much experience is required to be an arbitrator?
10-15 years of experience in law, business, finance, construction, or other specialized areas are generally required by most institutions.
Q5. Is registration with an arbitration institution compulsory?
Registration with institutions such as ICDR, ICSID, or DIAC is not compulsory but enhances career opportunities and credibility.
