Arbitrator selection is a critical component of every arbitration proceeding given that the selection will determine who will adjudicate the dispute. Commercial arbitration is a creature of contract. The parties in their contract provide for the governing arbitral organization and rules, if any, and how the arbitrator or arbitrators are to be selected. The parties, assisted by their counsel, can also agree to revise any of these provisions for the particular arbitration at issue even after the dispute arises.

Sole Arbitrator or Three Arbitrator Panel?

The use of a sole arbitrator is definitely less expensive and more efficient because the parties will only need to compensate a single arbitrator and will not have to deal with three different arbitrators' schedules and deliberations as to the numerous issues presented during the course of the arbitration. It can work very well when both sides can agree on the arbitrator and therefore have confidence in who will manage and hear their case.