Professionalism and ethics—the foundations of effective arbitration

07 October 2024

According to the translation, Julius Caesar should have said, “Caesar’s wife must be above suspicion.” Arbitration will be neither better nor worse than arbitrators. Thus, permanent arbitration courts and recommended arbitrators should strive to ensure the best possible quality of the award issued and the dispute’s conduct.

Impartiality and independence in arbitration: Why is it crucial?

BBased on my professional experience, I know that parties are usually satisfied with the quality of services the arbitrators provide (arbitration is, in fact, a service). Unfortunately, I am familiar with cases where arbitrators’ conduct disappointed them. An arbitrator should be impartial and independent. Upon accepting the function, one should forget about the interests of the party that nominated him and strive to resolve the dispute impartially. The more the arbitrator identifies with the interests of the appointing party, becoming its spokesperson—the worse for the case, the arbitrator and arbitration.

The Key to a First Impression in Arbitration

Much has been said and written about the impartiality and independence of arbitrators. There are two “schools” on whether and to what extent the parties should remember that arbitrators are their nominees. On the one hand, there is the aforementioned view. On the other, it is postulated that the arbitrator should strictly observe impartiality and independence. Cezar’s statement perfectly reflects the essence of such an approach. Arbitration institutions and arbitrators cannot lose sight of the fact that for some parties, it might be their first and only contact with the court of arbitration. The first impression is made only once. Therefore, if the arbitrator’s behavior exceeds the permitted limits, it surely will be difficult for the party to understand.

What standards should arbitrators meet?

The International Bar Association’s Model Guidelines are useful tools for Arbitrators to identify possible situations where a conflict of interest occurs. However, even the best intentions and regulations will not make up for rational and ethical conduct. This remark concerning caution also applies to parties and their representatives. Not only should they avoid placing arbitrators in awkward, ambiguous situations, but they also should refrain from nominating arbitrators with whom they are, for example, privately in good relations.

Modern arbitration must be based on the indisputable principles of impartiality and independence of arbitrators to be effective and credible. Arbitrators must remember that their professionalism and ethical conduct directly impact the quality of arbitration and its perception. Being aware of their role and responsibility, arbitrators should avoid any situations that may give rise to accusations of bias. At the end of the day, the quality of arbitration is as high as the professionalism of the arbitrators.

Blog created by

Practice Leader
Arbitration

dr Łukasz Wydra

Advocate
Partner

Stay up to date

Mini handbook

Arbitration
– where to start

dr Łukasz Wydra
Zgoda na przesyłanie informacji

See other posts