What happens if I disagree with the arbitrator's decision?

Arbitration decisions are generally final and binding, with limited grounds for appeal.

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Selecting Arbitrators [Securities Dispute Resolution]

Understanding Selecting Arbitrators [Securities Dispute Resolution]: Key Insights

Q: Can I choose my arbitrator?

Yes, parties can select arbitrators from a list provided by FINRA, but they must follow the rules regarding the number and type of arbitrators.

Definition & Meaning

Selecting arbitrators refers to the process of choosing individuals who will resolve disputes through arbitration, particularly in the context of securities disputes. An arbitration panel typically consists of either one or three arbitrators, depending on the amount of the claim. The Financial Industry Regulatory Authority (FINRA) outlines specific rules for this selection process, emphasizing the importance of impartiality and expertise in the securities industry.

Table of content

Legal Use & context

This term is primarily used in the context of arbitration, a method of resolving disputes outside of court. It is relevant in various legal areas, including securities law, contract disputes, and financial services. Users may utilize legal forms from US Legal Forms to assist in the arbitration process, including templates for selecting arbitrators and challenging their appointments.

Key legal elements

The number of arbitrators is determined by the claim amount: one for claims of $25,000 or less, and typically three for claims exceeding that amount.
At least one arbitrator must be a public person when a single arbitrator is appointed.
For a three-arbitrator panel, one must be from the industry, while the other two should be public arbitrators.
Parties can challenge arbitrators based on potential bias or conflicts of interest.

Real-world examples

Here are a couple of examples of abatement:

Example 1: A financial advisor and a client enter arbitration to resolve a dispute over a $40,000 investment claim. They select one arbitrator, as the claim amount allows for a single arbitrator unless otherwise requested.

Example 2: A complex securities dispute involving multiple claims totaling $150,000 requires a three-member arbitration panel, including one industry arbitrator and two public arbitrators. (hypothetical example)

State-by-state differences

State	Arbitrator Selection Rules
California	Follows similar FINRA rules but may have additional state-specific regulations.
New York	Requires at least one arbitrator to be a member of the New York State Bar Association.
Texas	Allows parties to agree on arbitrator selection but must adhere to minimum standards set by state law.

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

Common misunderstandings

What to do if this term applies to you

If you find yourself in a situation requiring arbitration, consider the following steps:

Review the claim amount to determine the appropriate number of arbitrators.
Consult the FINRA roster of approved arbitrators to understand their backgrounds and expertise.
Use US Legal Forms to access templates that can help you navigate the selection process and challenge any arbitrators if necessary.
If the process seems complex, seeking professional legal assistance may be beneficial.