| 6. Section 14(e) is intended to promote arbitral immunity. |
By definition, almost all suits against arbitrators, |
arbitration organizations, or representatives of an |
arbitration organization arising out of the good-faith |
discharge of arbitral powers are frivolous because of the |
breadth of their respective immunity. Spurious lawsuits |
against arbitrators, arbitration organizations, and |
representatives of an arbitration organization or involvement |
in collateral judicial or administrative proceedings deter |
individuals and entities from serving in such capacities and |
thereby harm the arbitration process because of the costs |
involved in defending even frivolous actions. Parties |
considering such litigation should be discouraged by the |
prospect of paying the litigation expenses of the arbitrator, |
arbitration organizations, or representatives of an |
arbitration organization. When they are not, the statute |
enables the arbitrators, arbitration organizations, or |
representatives of an arbitration organization to recover |
their litigation expenses and not to lose their fee and incur |
other expenses in the defense of a frivolous lawsuit. The |
terms |
"other reasonable expenses of litigation" are intended to |
include both actions at the trial-court level and on appeal. |