Arbitral Immunity Law and Legal Definition

Arbitral immunity refers to the immunity that is extended to an arbitrator for acts arising out of the scope of their arbitral functions. Arbitrators are judges chosen by the parties to decide the matters submitted to them.The independence necessary for principled and fearless decision making can best be preserved by protecting these persons from bias or intimidation caused by the fear of a lawsuit arising out of the exercise of official functions within their jurisdiction. Arbitral immunity is the keystone of the arbitration system and should not be overturned. Arbitral immunity is necessary for finality of arbitrators' decisions.