The use of party arbitrators is on the rise in the United States. It is now common in U.S.-based commercial arbitrations with tripartite panels that the parties each select unilaterally one party arbitrator, who then together select the third. Party arbitrators can be neutral or non-neutral but must follow standard ethical guidelines for disclosure and conduct.

Why a Party Arbitrator? -

The value of being able to appoint one arbitrator unilaterally is unmistakable. It allows each side to appoint someone with expertise in the subject matter of the dispute or special knowledge of the industry or the technology involved, or special expertise in an area of the law or even with the arbitration process if that is important. Industries that continue to use non-neutral arbitrators routinely, such as insurance or maritime, will generally appoint arbitrators based on their industry or subject matter experience and their comfort with the process.

Originally published on Law.com.