An arbitrator is someone officially appointed to make a decision that resolves legal disputes without resorting to court intervention. The appointment of an arbitrator is a pivotal stage in the success of an arbitration proceeding, and Section 7 of the Arbitration and Mediation Act (AMA) 2023 outlines the procedures for appointing an arbitrator, encompassing various scenarios that may arise during this process.
However, there are circumstances where the appointment of an arbitrator may be challenged, as outlined in Section 8[1](3) of the AMA 2023. “An Arbitrator may only be Challenged where the circumstances exist that give rise to justifiable doubts as to his or her impartiality or independence, or if he or she does not possess the qualification.”
The factors outlined in Section 8(3) of the Arbitration and Mediation Act 2023 (AMA 2023) that may prompt the challenge of an arbitrator’s appointment are as follows:
- Impartiality/Independence: Impartiality and independence are crucial in arbitration, as the arbitrator must remain unbiased and free from any conflicts of interest throughout the proceedings. Doubts regarding an arbitrator’s impartiality or independence may arise, leading to the apprehension of bias, which can undermine the integrity of the process. When appointing an arbitrator, it is essential to ensure there are no personal interests or biases. It is advised that arbitrators appointed have no prior relationships with the parties. However, exceptions may be made if parties are confident in the arbitrator’s ability to act impartially and independently. Additionally, arbitrators must disclose any relevant circumstances to the parties throughout the arbitral proceedings (Section 8(2) AMA).
It was reported that a Swiss arbitrator, Charles Poncent, was disqualified from hearing a mega case worth US$32 billion arbitration against an Iranian oil company after he was accused of displaying religious bias during a television broadcast about swimwear[2].
- Qualifications: The qualifications of an arbitrator play a significant role in
determining their ability to adjudicate an arbitration matter efficiently and fairly.
These qualifications not only ascertain the arbitrator’s ability to preside over a case but also heavily influence the quality of the entire process and the eventual award delivered. Key qualifications for an arbitrator encompass not only competence but also exceptional communication abilities, unwavering professionalism, deep expertise in the subject matter under consideration, and formal training or certification in arbitration procedures. Failure to meet these qualifications may lead to challenges to the arbitrator’s appointment.
In conclusion, ensuring the impartiality, independence, and qualifications of arbitrators is paramount for upholding the integrity and fairness of the arbitration process. Should you require assistance drafting your dispute resolution clause or need to resolve a dispute, please don’t hesitate to contact the Nigerian Institute of Chartered Arbitrators (NICArb). NICArb is committed to advancing arbitration and alternative dispute resolution (ADR) practices in Nigeria and beyond, with members from diverse professional backgrounds. We eagerly await your inquiries and are ready to assist you.
[1] Section 8 of the AMA outlines the grounds for Challenge and Section 9 outlines the procedure for challenging the appointing of an arbitrator.
[2] https://globalarbitrationreview.com
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