Arbiters (internationally known as "arbitrators") specialise in deciding disputes which disputing parties - or someone appointed by the parties - give them to resolve. The arbiter's decision is final and binding on the parties and can be enforced like a court judgment.
Given this role the job of an arbiter is to –
• act fairly and impartially as between the parties
• give each party a reasonable opportunity of putting his case and dealing with that of his opponent
• adopt procedures for deciding the dispute which –
- avoid unnecessary delay
- avoid unnecessary expense and
- provide a fair means for the resolution of the dispute
• issue a decision on the dispute (known as an “award” or “decree arbitral”) within any time limit stipulated by the parties and without unnecessary delay.
An arbiter must maintain the privacy of the proceedings and to keep information and documents produced in connection with the proceedings confidential, although there are limited exceptions to confidentiality.
Aside from limited cases an arbiter’s award is final and cannot be challenged. Appeal is excluded in order to ensure closure to the dispute one way or the other.
There is a Scottish Arbitration Code which parties can sign up to. Under this code the arbiter is required to issue his award within 6 months of being appointed. This is much quicker than most contested court proceedings.
Currently the Scottish Parliament has before it the Arbitration (Scotland) Bill 2009 which will have the effect of revolutionising and setting a new standard for arbitration for the 21st Century. The potential of arbitration to serve the needs of parties in dispute has not been so promising for many years.
For more information, go to FAQ section of this website.
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