How to Choose an Arbitrator

Arbitration is a form of dispute resolution by which controversies are voluntarily submitted to and resolved by a single arbitrator or a panel of arbitrators. To be truly considered an arbitration, the decision rendered must be final, binding and without any qualification or condition as to the finality of the award. The Ohio Arbitration Act, R.C. 2711.01-2711.24, did not define "arbitration" for purposes of the Act and, therefore, oftentimes, "arbitration" is confused with appraisement.

Appraisement is merely an agreed upon method of ascertaining quality, quantity, amount or value, with the object of preventing future disputes rather than settling present ones. Whereas, arbitration ordinarily encompasses the disposition of the entire controversy between the parties.

The parties to any arbitration will agree beforehand what the jurisdiction of the arbitrator will be, how the hearing will be conducted, how evidence will be admitted, and make any other agreements for the conduct of the hearing. The arbitrator's jurisdiction is in the nature of a judicial inquiry, and certain rules of procedure must be observed or the award may be void. Otherwise, arbitration awards are legally enforceable as set forth in the Ohio Arbitration Act, see above.

Arbitration may also proceed at common law, even though it does not conform to the provisions of the Ohio Arbitration Act. Common law and statutory arbitrations are often distinguished by the manner in which they are submitted.

A common law arbitration award is enforceable by the prevailing party, but only under an award by a suit at law. Considerable deference is given to the arbitrator's award and won't be overruled by a court if the court merely disagrees with the decision of the arbitrator.

Arbitrators are generally chosen because of their character for integrity and practical knowledge of the business out of which the controversy arises. Unless the agreement provides otherwise, it is not essential to an arbitrator's competency that he or she be an expert qualified to determine the submitted matter from personal knowledge. Arbitrators appointed to determine civil cases in courts of common pleas are required to be lawyers who have no relationship with the parties or the lawyers and no interest in the determination of the case.

This article is not intended, in any way, to be a comprehensive discussion of arbitration. To learn more, a good starting point would be 5A Ohio Jurisprudence 3d (2003), Alternative Dispute Resolution, Sections 206-315, from which the above information was taken.