Question

Many arbitrators encourage the parties to settle. They do so because it allows the parties to broker deals that they have some control over without worrying about someone else making a decision that they'll be stuck with. (It's also possible arbitrators do this so they aren't forced to make a decision themselves while still getting paid). If you were prepared to go to arbitration, would you accept the arbitrator's advice that you settle a case on the day of the hearing, or would you prefer making your case to the arbitrator? Also, is it ethical for arbitrators to encourage settlement during a hearing when they are being paid to listen to a case and make a ruling?

Answer 1

It totally depends on the situation of the case and type of case. Lets say, in X case I am guilty and I can be safe by doing some settlement then thats the best offer for me. But in opposite case I would love to go for hearing.

Yes, it is ethical to encourage settlement as settlement is mutual solution of the problem and both party will be happy with a solution which the mutually agreed upon rather than third person judgement. But in Y case one party is unaware about the situation and not have knowledge and in that case arbitrator show the wrong side to that party and indirectly force them for settlement that is unethical.