Legal Definitions - umpire

Umpire

An umpire is an independent and unbiased individual appointed to make a conclusive decision or ruling, particularly when two or more arbitrators, who were initially tasked with resolving a dispute, cannot reach a unanimous agreement. The umpire's role is to break the deadlock and provide a final, binding resolution.

Here are some examples illustrating the role of an umpire:

• Example 1: Commercial Contract Dispute

  A software development company and a client are in a dispute over project deliverables and payment terms. They agree to arbitration, with each party appointing an arbitrator. However, the two arbitrators cannot agree on whether certain features were part of the original scope or constituted additional work, leading to a stalemate on the final payment amount.

  Explanation: An umpire would be appointed in this scenario to review all the evidence presented by both sides and the arbitrators' differing opinions. The umpire would then issue a definitive decision on the scope of work and the final payment, resolving the deadlock between the original arbitrators.

• Example 2: Construction Project Disagreement

  A homeowner and a general contractor are in arbitration regarding significant cost overruns and delays on a home renovation project. They each selected an arbitrator, but these two arbitrators have conflicting interpretations of the construction contract's force majeure clause and its impact on the timeline and budget.

  Explanation: Because the two arbitrators cannot agree on the application of a critical contract clause, an umpire would be brought in. The umpire would impartially assess the arguments from both sides and the arbitrators' positions, ultimately making the final, binding determination on whether the force majeure clause applies and how it affects the project's costs and schedule.

• Example 3: Partnership Dissolution

  Two business partners are dissolving their company and have agreed to use arbitration to divide their assets and liabilities. They each appoint an arbitrator, but the arbitrators cannot agree on the fair market valuation of a key piece of intellectual property owned by the company, which is crucial for the equitable distribution of assets.

  Explanation: With the arbitrators unable to reconcile their valuation methods for the intellectual property, an umpire would be appointed. This umpire would independently evaluate the financial data and expert opinions, then provide a final, authoritative valuation that allows the partnership dissolution to proceed.