When faced with a legal dispute in the construction industry, choosing the right arbitrator is one of your most critical decisions. Arbitration has become a favored method for resolving disputes due to its efficiency and flexibility, particularly in construction matters where timelines and relationships are often at stake. However, not all arbitrators are created equal, and the outcome of your dispute can largely depend on selecting the right one.
In this blog, we’ll explore the essential criteria for choosing an arbitrator. We will focus on key qualities to look for, the importance of experience and expertise, and practical tips for vetting potential arbitrators. Additionally, we will discuss what makes an arbitrator particularly well suited for construction disputes, especially in California’s highly regulated and complex construction industry.
Key Qualities to Look for When Selecting an Arbitrator
The role of an arbitrator is to provide impartial and informed decisions on the matters in dispute. Unlike judges, who may not always have specialized knowledge of certain industries, arbitrators are often chosen for their expertise in the relevant field. Here are some of the most important qualities to consider when choosing an arbitrator:
Impartiality: The arbitrator should be neutral with no vested interest in either party. They must approach the dispute without bias, to help ensure that all parties feel they are treated fairly.
Professionalism: A good arbitrator must maintain the highest standards of professionalism, including the ability to manage proceedings efficiently and communicate clearly.
Industry Expertise: Industry expertise can and should be a careful consideration when selecting an arbitrator, especially for construction disputes. An arbitrator who understands the specific complexities of construction law, industry standards, and contracts and has extensive experience litigating those types of claims is better equipped to fully appreciate those issues to help reach a fair and reasonable determination.
Strong Decision-Making Abilities: The ability to make sound, well-reasoned decisions based on the facts and law presented is crucial. This requires not just legal knowledge but also practical experience in the industry relevant to the dispute.
Reputation and Integrity: Finally, an arbitrator’s reputation for integrity and fairness is critical. Look for professionals with a track record of delivering unbiased decisions that are respected by both parties.
The Importance of Experience and Industry Knowledge
When it comes to construction disputes, experience in both legal and industry-specific matters plays a key role. Construction law can be highly specialized, involving unique contractual terms, technical language, and obligations for regulatory compliance that might not be immediately apparent to arbitrators who lack sufficient exposure to the field.
· Experience: Choosing an arbitrator with years of experience in both arbitration and the construction industry is invaluable. They are well suited to understand the nuances of construction contracts, such as owner change orders, subcontract change orders, loss of use claims, and performance disputes, which may not be as well understood by an arbitrator who lacks personal in-depth experience dealing with such claims.
· Specialized Focus: Focus on California construction law is especially critical. The California State Bar does not presently have a legal certification for construction law (see https://www.calbar.ca.gov/Attorneys/Legal-Specialization/Legal-Specialty-Areas), which means that no attorney can claim to be a “specialist” in California Construction Law. However, it is nevertheless important to distinguish between those who only have a vague understanding of construction disputes from those who have spent a great deal of their career handling construction disputes. This region has unique laws, regulations, and industry practices that may vary significantly from other states. An arbitrator with decades of experience handling construction disputes in California courts should be well-versed in these complexities.
· Industry Knowledge: An arbitrator with in-depth knowledge of building practices, safety regulations, project management, architectural standards, and the steps taken to reasonably investigate and evaluate complaints of construction deficiencies has a broader basis for understanding the intricacies involved in a dispute. This knowledge helps ensure the arbitrator’s decisions are grounded in practical realities, not just ideals.
How to Vet Potential Arbitrators and Assess Their Qualifications
Once you’ve identified the qualities you’re looking for in an arbitrator, it’s time to begin the vetting process. Vetting potential arbitrators thoroughly is essential to ensuring they possess the experience, qualifications, and integrity needed for your case. Here are some factors you may want to consider when assessing prospective arbitrators:
Review Their Professional Background: Look at the arbitrator’s professional history to confirm if they have experience with the issues to be determined. It is also important to determine whether they have handled disputes in the same jurisdiction to have a better appreciation for the standards and commonalities in your jurisdiction.
Seek Recommendations: Ask other attorneys or industry professionals for recommendations. Arbitrators with strong reputations often come highly recommended by peers who have first-hand experience with their work, either as a litigator or as an arbitrator. Also, it’s not uncommon to watch arbitrator introduction videos in advance of formal selection to get a sense of their style, approach, and demeanor.
Tips for Choosing the Right Arbitrator for Construction Disputes
The stakes are often high in construction disputes, and selecting an arbitrator who understands these stakes is critical to achieving a fair resolution. Here are some additional tips to help you make the best choice:
· Focus on Relevant Experience: Narrow your search to arbitrators who have specifically handled construction disputes. This targeted experience will make them more familiar with the contractual language and industry issues at the heart of your case.
· Look for Local Knowledge: Construction laws and regulations can vary significantly from state to state. When choosing an arbitrator in California, prioritize individuals with deep knowledge of California law. They will be better equipped to understand the specific legal framework governing your dispute.
Choosing the right arbitrator is an investment in the outcome of your dispute. By focusing on key qualities like impartiality, experience, and industry knowledge and by conducting a thorough vetting process, you can ensure that your chosen arbitrator is well-equipped to handle your construction dispute.
With the right arbitrator, your dispute will be in capable hands, and you can expect a fair, informed, and timely resolution.