It can be concluded that the effectiveness of arbitration as a means of dispute resolution is compromised from the outset, i.e., from the time when the parties have to reach courts for even the appointment of an arbitrator. To illustrate, consider the use of arbitration clauses in “legacy agreements” between banks and their customers. These agreements typically include provisions stating that any disputes between the parties shall be resolved through arbitration, a decision that was likely motivated by the perceived advantages of speed and efficiency of arbitration. However, as previously discussed, the appointment of an arbitrator by the courts can be a lengthy and protracted process, undermining the intended benefits of arbitration.
Source: Barandbench
