What is a Panel of Arbitrators and How Does It Function in Arbitration?

Q: Can I appeal an arbitration decision?

Generally, no. Arbitration decisions are binding with limited grounds for appeal.

Q: How are arbitrators selected?

Typically, each party selects one arbitrator, and a third arbitrator is chosen by mutual agreement or appointed by an authority.

Definition & Meaning

A panel of arbitrators is a group of individuals selected to resolve disputes outside of the court system. This group is typically formed by a relevant authority and consists of arbitrators who are neutral third parties. When parties agree to arbitration, they submit their cases to the panel and accept its decision, waiving their right to appeal. Usually, an arbitration panel comprises three members, but it can be expanded to five if necessary.

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Legal Use & context

The term "panel of arbitrators" is primarily used in civil law contexts, particularly in disputes involving contracts, business transactions, and sometimes family law matters. Arbitration is often preferred because it can be faster and less formal than court proceedings. Users can manage arbitration processes with the help of legal forms available from US Legal Forms, which provide templates drafted by experienced attorneys.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

For instance, in a business contract dispute, both parties may agree to have their case heard by a panel of arbitrators. Each party selects one arbitrator, and they jointly choose a third arbitrator to make the final decision. (Hypothetical example.)

Relevant laws & statutes

According to Florida Statutes, specifically Fla. Stat. § 766.207 (4), an arbitration panel must consist of three arbitrators: one chosen by the claimant, one by the defendant, and a chief arbitrator appointed by the Division of Administrative Hearings.

State-by-state differences

State	Panel Composition
Florida	Three arbitrators: one from each party and one chief arbitrator.
California	Typically three arbitrators, but can vary based on the agreement.
New York	Usually three arbitrators, but parties can agree to a different number.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term	Definition	Key Difference
Mediation	A process where a neutral third party helps disputing parties reach a voluntary agreement.	Mediation is non-binding, while arbitration decisions are binding.
Court Litigation	The process of resolving disputes through the court system.	Arbitration is generally faster and less formal than court litigation.

Common misunderstandings

What to do if this term applies to you

If you find yourself in a situation where a panel of arbitrators may be involved, consider the following steps:

Review any contracts or agreements to see if they include an arbitration clause.
Consult with a legal professional to understand your rights and obligations.
Explore US Legal Forms for templates and resources to assist with the arbitration process.

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Quick facts

Typical panel size: Three arbitrators.
Decision type: Binding.
Common areas of use: Business disputes, contract issues.
Appeal rights: Very limited.

Key takeaways

Frequently asked questions

What is the main purpose of a panel of arbitrators?

The main purpose is to resolve disputes efficiently and fairly without going to court.