What's Happening?
In-house counsel are being advised to take a more active role in the selection of arbitrators to ensure effective case management and favorable outcomes in arbitration proceedings. The process of selecting an arbitrator is crucial as it significantly
influences the timeline, costs, and exposure of the client involved in a dispute. While outside counsel typically present candidates, in-house counsel are encouraged to exercise oversight and ensure that the chosen arbitrator aligns with the business's interests rather than merely reflecting the comfort zone of the law firm. The article emphasizes the importance of selecting an arbitrator with strong case management skills, subject matter expertise, and availability to manage the case personally. These qualities are essential to prevent arbitration from becoming as prolonged and costly as litigation. In-house counsel are also advised to maintain close communication with outside counsel throughout the arbitration process and to actively participate in procedural conferences to ensure the proceedings align with the business's objectives.
Why It's Important?
The active involvement of in-house counsel in arbitrator selection is crucial for businesses seeking efficient and cost-effective dispute resolution. Arbitration is often chosen over litigation for its potential to provide faster resolutions and lower costs. However, these benefits can be undermined if the arbitrator lacks strong case management skills or is not well-suited to the specific dispute. By taking an active role, in-house counsel can ensure that the arbitrator selected is not only qualified but also capable of managing the case efficiently, thus safeguarding the business's interests. This proactive approach can lead to more predictable outcomes and prevent unnecessary delays and expenses. Additionally, it empowers businesses to leverage the flexibility of arbitration to tailor the process to their specific needs, which is not possible in traditional court proceedings.
What's Next?
In-house counsel are encouraged to continue their involvement beyond the selection of the arbitrator by actively managing the arbitration process. This includes making informed decisions about the scope and pace of the proceedings and exploring opportunities for settlement before the hearing date. By appearing at important procedural conferences and maintaining open communication with outside counsel, in-house counsel can ensure that the arbitration process remains aligned with the business's strategic goals. This ongoing engagement can also help identify opportunities for business-to-business negotiations that could lead to a resolution before the arbitration concludes.
