A simple guide between Arbitrator and Adjudicator and how to become one?

In a world where legal disputes can be as complex as they are costly, understanding the nuances of alternative dispute resolution methods is crucial. This article provides a fundamental understanding of arbitration and adjudication, two pivotal mechanisms that offer efficient, effective solutions outside the traditional courtroom setting.

Arbitration:

Definition: Arbitration is a method of resolving disputes outside of court. A neutral third party, known as an arbitrator, listens to both sides and then makes a decision. The decision is usually binding, meaning it must be followed like a court judgment.

When to Use:

• Arbitration has a wide use. It can range from significant commercial disputes, international business conflicts, and employment matters to family conflicts, minor renovations and consumer issues.
• It’s chosen when parties want a private, potentially less formal process than court, with an expert in the subject matter of the dispute.

Contract Recommendations:

• Many contracts include a general arbitration clause stipulating that disputes must be resolved through arbitration.
• However, It is recommended that the contract be clear on the arbitrator’s seat location, the process of appointing an arbitrator and the arbitration process.
• If the contract has no mention of arbitration, then both conflict parties should draft an arbitration agreement to govern the process and dispute effectively.

Adjudication:

Definition: Adjudication refers to a legal process where an adjudicator (a neutral third party) is appointed to resolve a dispute, usually in a quicker manner, to enable both parties to continue working together. It’s often used in the construction industry.

When to Use:

• It is commonly used for resolving disputes in construction contracts.
• Ideal for quick resolution of disputes while the project is ongoing, without halting work.

Contract Recommendations:

• The use of adjudication should be clearly specified in the contract. Otherwise, the parties of the conflict need to elect using adjudications and make a separate agreement linked to the contract.
• It is frequently recommended in construction contracts, especially in the UK, Australia, and New Zealand. Recently, in 2019, it was mandated in the Canadian province of Ontario’s Construction Act.
• Some contracts in other industries might also include adjudication clauses like manufacturing.

Key Differences between arbitration and adjudication:

• Arbitration is usually less formal than court but more formal than other alternative dispute resolution processes.
• The arbitrator(s) makes the decision, not a judge.
• It’s confidential, and the proceedings are not part of the public record.
• Adjudication is often faster, less formal and more focused on resolving disputes quickly.
• The decision of an adjudicator is usually interim, meaning it’s binding until the dispute is resolved through arbitration or litigation.

Becoming an Arbitrator or Adjudicator:

1. Education and Experience:
   • While many arbitrators have a legal education, having one is unnecessary to be an arbitrator.
   • Typically, a law background is preferred as an additional qualification. However, arbitrators are chosen based on their expertise and experience. The arbitrator can be an engineer, psychologist, teacher or banker.
   • On the other hand, the adjudication is focused on certain industries, commonly construction. It is beneficial to have construction industry experience
   • Gaining experience through related working fields and being part of the arbitration/adjudication life cycle is recommended before serving as an arbitrator/adjudicator
2. Training and Certification:
   • Training and certification is a must to understand the arbitration proceedings, hearing, evidence and award writing
   • In addition, being part of a professional arbitration body is crucial to bind yourself with a code of ethics and have the support of professionals.
   • Adjudication is normally a governing body to certify adjudicators based on specific training and experience. Look for the ANA “Authorized Nominating Authority” at your jurisdiction.
   • Continuous learning and staying updated with legal and industry changes are essential.

In conclusion, arbitration and adjudication are effective dispute resolution processes, each suited to different scenarios.