What is the effect of arbitral immunity?
Arbitral immunity is a legal concept that protects arbitrators from being held liable or accountable for a decision they make while performing their duties. This immunity applies in California and other states and is a type of immunity from civil responsibility. Arbitral immunity generally assures arbitrators that if they act within the scope of their duties, they cannot be held liable for any decision they make. This can provide relief for arbitrators, who could otherwise be subjected to significant financial liability in the event of a negative decision. The effect of arbitral immunity is that it can allow for more impartial and unbiased decisions. Without such protection, an arbitrator may be tempted to make decisions to protect themselves from potential liability, rather than to make decisions that are in the best interest of the parties involved. In California, arbitral immunity applies to those individuals or entities that are a party to the arbitration. This means that the arbitrator or arbitral panel is immune from civil or criminal liability, except in cases of fraud, wilful misconduct, or criminal activity. Furthermore, arbitral proceedings must be conducted according to the rules and procedures established by the American Arbitration Association (AAA). Ultimately, arbitral immunity protects arbitrators from any potential legal concerns that may arise from the decision-making process. With this protection, arbitrators are free to make decisions that are in line with the facts of the case and the wishes of the parties involved, rather than decisions driven by fear of liability.
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