International Commercial Arbitration Require Party Arbitrators Painter Council No. 33 of Moen (1982) 128 Cal.App.3d 1032, 1040, which provides that arbitrators appointed by the party need not be neutral or impartial as long as each party to the dispute enjoys equal representation of bias. allow the party`s arbitrator to be predisposed to the appointing party, but in all other respects he or she must act in good faith, with fairness and integrity; An impartial third party invited to resolve a controversy, dispute or issue in which he or she has no financial, official or personal interest. That third party is obliged to disclose fully to the parties concerned whether it has or develops such an interest in the course of the proceedings. Kaiser Permanente Member Arbitration Rules, Section A.4., states: “`Arbitrator party` means an arbitrator chosen from one of the parties to the arbitration.” At page 20 of the Rules, Kaiser states: “The arbitrators of the parties are appointed when the claimant or Kaiser prefers three arbitrators to decide the case rather than the neutral arbitrator alone.” Note that Kaiser defines “neutral arbitrator” as “any arbitrator other than an “arbitrator party”.” (Kaiser Rule 5.) (Kaiser rules can be found under OIA-Kaiserarb.com) Article 170.1 of the Code Civ. Proc. establishes the grounds for challenging a bailiff, and the violation of these grounds by a neutral arbitrator is a ground for challenge. Unless otherwise provided in the arbitration agreement, the obligations of a tri-neutral arbitral tribunal are set out in Article 1282, paragraph (c) of the Code of Civil Procedure. This section provides: (1) a majority of neutral arbitrators may exercise the powers and duties of a neutral arbitrator, or (2) by unanimous consent of the committee, the powers and duties to conduct the arbitration may be delegated to any of them, subject to exceptions.  A lawyer who subsequently acts as a neutral third party may be called upon to represent a client in the same matter as a lawyer. Conflicts of interest that arise for both the individual lawyer and the lawyer`s law firm are dealt with in Rule 1.12. Conflicts within companies can be very costly, both in terms of time and resources.
Alternative dispute resolution (ADR) can be helpful when considering moving from conflict to productivity within your own organization. The three most common ADR techniques are: mediation, arbitration and medication. During mediation, a neutral third party allows a . Read more Code Civ. Proc., § 1281.9 is another set of disclosure requirements for neutral arbitrators, some of which reflect standards. Code Civ. Proc., § 1281.85 requires neutral arbitrators to comply with the standards. Adversarial arbitration agreements generally set out requirements for the selection of arbitrators.
Kaiser`s agreement, for example, requires that the parties` arbitrators be appointed by each party. (Kaiser Rule 14.b.) Kaiser`s Code of Professional Conduct requires arbitrators of designated parties to comply with the ethical requirements of the AAA Code of Professional Conduct (Canons) for arbitrators in commercial disputes (see below). (Kaiser Rule 4.) Code Civ. Proc., § 1281.92 establishes the prohibited activities of a private arbitration firm (PAC) such as JAMS that may result in the challenge of a neutral arbitrator on the PAC panel. (See also Standard 8.) Section (q) of Standard 2 defines “arbitrator of the parties” as “arbitrator unilaterally chosen by a party”. In mediation, a neutral third party tries to help the disputing parties reach a consensus independently. Instead of imposing a solution, a professional mediator tries to help the parties to the conflict seek the interests that underlie their positions. In cooperation with the parties, mediators try to help them find a lasting, voluntary and non-binding solution. In moderation and mediation, neutrality is often expected to make judgments or facilitate dialogue regardless of bias, focusing on the process rather than the outcome.
 For example, a neutral party is considered to have no (or fully disclosed) conflict of interest in a conflict, and is expected to act as if it were impartial. Neutral parties are often perceived as more trustworthy, reliable and secure.   (a) A lawyer acts as a neutral third party if the lawyer assists two or more persons who are not clients of the lawyer in resolving a dispute or other matter that has arisen between them. Service as a neutral third party may include acting as an arbitrator, mediator or any other capacity that allows the lawyer to assist the parties in resolving the matter.