COMMENT FOR THE DAY #77
Is there a divide in the world of arbitration between arbitrators appointed from the trade and arbitrators appointed from the law?
There is a contract. It is there in print. But a difference emerges between Seller + Buyer about the meaning of a sentence. Lawyer arbitrators say words are words – they have meaning – stick to the words. Trade arbitrators say there is an overall commercial context and see the words with a different meaning.
The parties have chosen arbitration in preference to litigation. The arbitrators from the business sector have their own commercial understanding. They have seen it all before + reach one conclusion. The arbitrators from the law have their own legal understanding + see things quite differently. Who Is Right? Who Is Wrong?
The Law – Lord Hamblen – says words have specific legal meaning – stick to them. But is that why the Seller and Buyer chose arbitration in preference to litigation. Doesn’t the trade want a commercial experience? An interesting division of opinions opens up. Trade arbitrators and Lawyer arbitrators have different views.