SINGLE ARBITRATOR
The discussion above is basically the same for this form of ADR. The distinction is the fact that a single arbitrator is used in place of a three-person panel. The arbitrator must act neutral. The advantage of arbitration is the substantially decreased cost. It is also easier to schedule hearings since the parties only need to coordinate their schedules with a single arbitrator.
The decision to use a single arbitrator should be made very carefully. It is important to ask yourself not only if this person is experienced, but also if the experience is in the area of your dispute. It would not be productive to have a mediator experienced in commercial work to handle a complex mass torts pharmaceutical case. Nor should someone with experience in insurance coverage handle an antitrust matter. Use the same due diligence you would employ in the selection an ADR professional that you would to retain in an expert witness.
BASEBALL ARBITRATION
This is a unique form of arbitration borrowed directly from the professional sports world. In this form of ADR, a single, neutral arbitrator is retained. Both parties present their strongest case with the settlement value they believe is supported by their case. The arbitrator then chooses one of the two positions asserted. The arbitrator cannot carve out an equitable determination but is required to select one position or the other. The concept is that the parties will be more realistic in their demands as they realize that the arbitrator is required to select one position or the other and the parties will be bound by that selection.
The advantage lies in the quickness of the hearing and the decision. Hearings under this form of ADR are more typically presentation type hearings and not burdened with numerous experts or exhibits.
The disadvantage is in the fact that arbitrator can only select one position or the other. Thus, the arbitrator is unable to carve out a compromise position. Compromise in their form of ADR, to the extent if exists at all, lies with the two parties keeping their own positions as reasonable as possible.