What is the effect of arbitral immunity?
Arbitral immunity is a legal principle that protects arbitrators from civil lawsuits or other legal actions arising out of the arbitrator’s conduct while acting in their official capacity. This protection allows arbitrators to freely decide the disputes without fear of repercussions or personal liability. In Maryland, arbitral immunity is codified in the Maryland Arbitration Act, which states that arbitrators cannot be held liable for any acts performed in relation to the arbitration process. This includes damages or other legal claims stemming from decisions made by the arbitrators. The effect of this immunity is to promote fairness and independence in the arbitration process. Although arbitrators are not immunized from criminal or intentional civil wrongdoing, they are shielded from possible retaliatory lawsuits resulting from their decisions. This allows them to be impartial and unbiased when resolving disputes, as they are not subject to any personal or financial repercussions for their decisions. Additionally, this immunity provides assurance to parties involved in an arbitration that their arbitrator will carry out their duties free from outside pressure or influence. This assurance is key to a successful arbitration process, as it allows parties to trust that the decision rendered will be impartial and not based on any personal gain or loss. Overall, arbitral immunity provides much needed protection to arbitrators to ensure the successful and fair resolution of conflicts. In Maryland, its sole purpose is to provide assurance that the arbitrator has sole and independent authority to make decisions without fear of legal repercussions.
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