Synopsis By: Dissen - Proceeding Author: Gabriel N. Alexander

Although rarely expressly authorized by the parties to exercise discretion as to any matter, arbitrators exercise discretionary authority in the conduct of the hearing, in arriving at the substantive outcome of disputes, and in fashioning remedies. Because arbitrators are selected based upon experience, expertise and reputations for fair and reasonable decisions, the discretionary authority is seldom abused. Further, the requirement that an arbitrator’s reasoning be set forth in a written opinion necessitates a considered, rather than arbitrary, exercise of authority. Judicial and administrative discretion are defined.