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The American Arbitration Association recently handed down revisions to their Commercial Arbitration Rules that became effective October 1, 2013. One of the biggest changes is the addition to the mediation step. This addition states that subject to any party's ability to opt out of mediation, all cases with claims above $75,000 are expected to go to mediation during the arbitration of the case. Summary of Changes to Arbitration Rules • Mandatory Mediation Subject to Unilateral Ability to Opt Out - Parties are required to mediate their disputes with claims above $75,000 - Any involved party can opt out - The mediation will occur at the same time as the arbitration process • Regulation of a Preliminary Hearing - Preliminary hearings must be scheduled as soon as possible following the appointment of a sole arbitrator or tribunal - During the hearing, the parties will each have the opportunity to discuss the relevant issues in the cases, especially with regard to discovery, witnesses, and the location and timing of the following hearings - The arbitrator will generate a written order with the details of the agreements made between the two parties - Arbitrators are restricted from using procedures from the court system that increase costs and delay arbitration • Discovery Process Changes - Arbitrators now have increased authority with regard to the discovery process - Arbitrators are responsible for promoting efficient discovery processes while allowing each side to present their side of the story • Dispositive Motions - Arbitrators now have the authority to rule on dispositive motions - Dispositive motions are now to be granted if the moving party has demonstrated that the motion will eliminate or limit the scope of the claims brought in the case • Deadline Changes - Deadlines are shifted from 15 to 14 calendar days with regard to objects to location, deadline for arbitrator select lists, and responding to notice on arbitrator appointment. The new Rules represent a shift that has been common for other institutions that use arbitration, including the broad authority of arbitrators to implement or change rules as they see fit. Discretion of the arbitrator will continue to play a major role in how arbitration unfolds. This highlights the importance of selecting a trained and appropriate arbitrator for each case. An experienced arbitrator is essential for ensuring that both sides are able to share their side of the story in a streamlined process. Compliance with existing rules ensures fairness in the arbitration process. Met Wilson is a mediator and arbitrator practicing in Portland, Oregon, specializing on commercial disputes, claims against broker-dealers, consumer claims, real property disputes, franchise disputes, employee claims, construction claims, contract claims, insurance coverage disputes and business torts. For assistance in any of these areas, please call Met Wilson at 503-972-5090 or visit http://wilsonadr.com/
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