Effective May 15, 2002
AMERICAN DISPUTE RESOLUTION
CENTER, INC.
RULES OF COMMERCIAL ARBITRATION
1. RULES
The Rules set forth
herein shall be binding upon the parties to a dispute submitting to arbitration
before the American Dispute Resolution Center,
Inc. (hereinafter "ADR Center"), except as the parties may
otherwise agree. These Rules may be
modified from time to time without notice by ADR Center, however the Rules in
effect as of the date of commencement of an arbitration shall remain in effect
as to that arbitration, unless the parties agree to adopt the modified Rules.
2. INITIATION
Upon the parties
initiating an arbitration pursuant to these Rules, ADR Center shall assign an
Case Manager to administer the arbitration proceeding. The arbitration is commenced upon an
agreement of the parties to arbitrate, either by contract or by mutual
agreement, and the filing of a complaint by the claimant. The parties shall sign an agreement to be
bound by the Rules hereunder and to agree to the fee schedule of ADR Center.
The parties may modify, add or remove claims and/or counterclaims during
the pendency of the matter by filing such in writing with the ADR Center Case
Manager not less than seven calendar days prior to the first hearing. Once the hearings have commenced, any such
requests for modifications, additions or deletions shall be granted only upon
the arbitrator's consideration of a written motion in which the basis for the
modification is fully set forth and after the other party has had an
opportunity to respond.
3. ANSWER
The respondent may,
in its discretion, choose to file an answer and/or counterclaim, but must do so within fourteen calendar days of
receipt of ADRC’s confirmation of the complaint, unless said respondent files a
request for a seven calendar day extension of time to respond within the
initial fourteen day period. If no
answer is filed by the stated time, such shall be treated as a denial of the
claim.
4. LOCALE
The site of the
hearing shall be as required by contract or as the parties may agree. Should no contract requirement exist and
should the parties be unable to agree, the Case Manager shall have the
authority to set the hearing site, such decision to be final and binding. Alternatively, the parties may agree to
waive oral hearing and make a written submission to the arbitrator.
5. ARBITRATOR APPOINTMENT
The Case Manager
shall provide the parties with a list of arbitrators from which to select an
arbitration panel, and any arbitrator who is not acceptable to a party shall be
stricken. The parties shall return such
listing to the Case Manager within fourteen calendar days. The Case Manager shall thereafter select the
arbitration panel from the remaining acceptable names. Should the parties be unable to agree upon
an arbitrator, the Case Manager shall appoint an arbitrator(s). Alternatively,
the parties may agree to submit the matter to an arbitrator(s) of the parties
own choosing. Once selected, the
arbitrator shall serve unless a conflict of interest exists. Should an arbitrator resign during the
pendency of a hearing, the Case Manager shall appoint a substitute
arbitrator. If a party does not return
the list within the time specified, all persons named therein shall be deemed acceptable.
6. NUMBER OF ARBITRATORS
Arbitration panels
shall consist of one arbitrator in any claim and counterclaim not exceeding
$250,000.00 in the aggregate, and shall consist of three arbitrators in all
other claims, except as the parties may otherwise agree. Once the arbitration panel is selected, the
panel shall have authority to conduct the hearing and render the award. At no time shall either party or
representative thereof contact an arbitrator directly during the pendency of
the case.
7. DIRECT APPOINTMENT BY PARTIES
If the parties’
agreement identifies a particular arbitrator or a method of appointing an
arbitrator, such will be honored. If
the parties’ agreement specifies a period of time by which an arbitrator shall
be appointed by a party, and any party fails to comply with such time period,
ADR Center shall be authorized to appoint an arbitrator(s). If no time is specified in the parties’
agreement, ADR Center shall notify the appropriate party to appoint an
arbitrator within fifteen days. If no
arbitrator is appointed within that time, ADR Center shall be authorized to
appoint an arbitrator.
Once an arbitrator
is selected, the arbitrator shall have the authority to conduct the hearing and
render the award. At no time shall
either party or representative thereof contact an arbitrator directly during
the pendency of the case.
8. APPOINTMENT OF NEUTRAL ARBITRATOR BY PARTY-APPOINTED ARBITRATORS
If the parties have appointed their arbitrators in accordance with Section 7 of these Rules, and have authorized the appointed arbitrators to select a neutral arbitrator within a specified time and no arbitrator is appointed within that time, ADRC shall be authorized to appoint the neutral arbitrator to serve as the chairman.
If no time is specified in the parties’ agreement to select the neutral arbitrator and the neutral arbitrator is not selected within fifteen days from the date of the appointment of the last party-appointed arbitrator, ADRC shall be authorized to appoint the neutral arbitrator to serve as the chairman.
If the parties have agreed that the party-appointed arbitrators shall appoint a neutral from ADRC’s panel of commercial arbitrators, as set forth in Section 5 of these Rules, then such will apply.
9. REQUEST FOR
ADMINISTRATIVE CONFERENCE
The parties may
initiate an administrative conference with the Case Manager and/or arbitration
panel prior to the initial hearing. The
Case Manager and/or arbitration panel may also, in their discretion, initiate such
a conference. The parties shall act in
good faith and seek agreement as to exchanges of discovery, scheduling, issues
and documents not in dispute, and all such procedural matters as may facilitate
and expedite the process. All matters
not agreed to by the parties or upon which issues or challenges have arisen,
including without limitation where discovery requests are not complied with in
a timely manner under these Rules, shall, upon written motion, be ruled upon by
the arbitration panel, whose decision shall be binding. The arbitration panel may rule on such
motion on the papers or may require oral argument, in its discretion. The Case
Manager shall have the authority to act hereunder on those issues arising prior
to the appointment of an arbitration panel; the arbitration panel shall have
the authority to act hereunder once selected.
10. OATH AND DISCLOSURE
A notice of arbitration
appointment shall be mailed to the arbitrator for signature and notarization
and returned to ADRC prior to the commencement of the first hearing. The arbitrator must immediately disclose any
circumstances that may affect his or her impartiality, and ADRC will advise the
parties of any such disclosure. If any
one party files an objection to the continued service of the neutral
arbitrator, ADRC shall be authorized to determine whether the arbitrator will
be disqualified and the parties will be informed of such decision, which shall
be binding.
11. DATE,
TIME AND PLACE OF HEARING
ADR Center shall
endeavor to administer and schedule hearings as swiftly as practicable, and the
parties agree to exercise good faith in cooperating with and responding to
requests from the Case Manager. Any
parties' failure to do so may result in the arbitrator ordering the scheduling
of hearings.
12. REPRESENTATION
The parties hereto may
be represented by legal counsel or an authorized representative. Such person must be identified to the Case
Manager not later than seven calendar days prior to the commencement of the
initial hearing.
13. STENOGRAPHIC RECORD
Either party may
request a stenographic record at its expense and for its sole use, however such
shall not be the official record of the case and shall not be submitted to the
arbitration panel for its use unless the arbitration panel determines that such
record, or a portion thereof, shall be considered the official record, in which
that portion of the record so designated shall be made available to the other
party. Alternatively, the parties may
agree to a joint stenographic record and to split the cost thereof. In that event, the parties shall arrange for
a copy of the record to be provided to the arbitration panel as the official
record of the proceeding. Nothing herein shall prevent a party who has arranged
for a stenographic record at its sole or joint expense from introducing a
portion of such record as may be relevant to its direct examination or
cross-examination of a witness, or as an exhibit. In such cases, that portion of the record shall be made available
to the other party and to the arbitration panel.
14. REQUEST FOR POSTPONEMENTS
An arbitrator may grant the postponement of a hearing upon the request of a party for good cause shown or upon his or her own initiative, and shall grant a request for postponement when the parties agree thereto.
15. ARBITRATION IN THE ABSENCE OF A PARTY
OR REPRESENTATIVE
If either party or representative fails to appear or request a postponement after due notice of the hearing, the hearing will proceed ex-parte and the arbitrator shall have the authority to render an award.
16. EVIDENCE
The claimant shall
present evidence to support its demand and claim through the use of direct
examination of witnesses. The
respondent shall have the right to cross examination of claimant's
witnesses. The respondent shall
thereupon present evidence to support its position and any counterclaim. The claimant shall have the right to cross
examine respondent's witnesses.
Redirect and recross shall be permitted in the arbitrator's
discretion. All witnesses’ testimony
shall be under oath. Opening
statements, closing statements and post-hearing briefs may be requested by the
parties, or as the arbitration panel may require. Requests for a subpoena may be submitted to the arbitration panel
and/or may be sought in accordance with applicable state law. The arbitration panel shall have broad
discretion throughout the proceedings as to rulings on procedural matters, objections,
admissibility, relevance, materiality,
requests for sanctions and any other matters which may arise. No settlement offers or discussions shall be
offered or admitted.
17. CLOSE OF HEARINGS
Once the hearings are
completed, any briefs received, and all fees paid, the hearing shall be
considered closed, and a decision shall be rendered within 30 days, unless for
good cause.
18. REOPENING OF HEARINGS
Any party may move to
reopen the hearings, or the arbitrator(s) may reopen the hearings on their own
initiative, at any time prior to the final award being rendered.
19. REQUEST FOR EXTENSIONS OF TIME
The parties, by mutual
agreement, may modify any time period.
20. TIME AND FORM OF AWARD
The award shall be in
the form of a concise written statement, without explanation as to the basis
for the award. The award shall be fully
binding upon the parties, except that enforcement may be limited pursuant to
applicable federal and state law. In
the case of a three person arbitration panel, a majority decision shall be
required. The arbitrator(s) may grant
any award, ruling, remedy or relief as the arbitrator(s) deems appropriate in
accordance with applicable state law. The entire proceeding and award shall be
confidential.
21. AWARD UPON SETTLEMENT
The parties may, at
any time, agree to seek mediation from ADR Center, in which event the
arbitration proceeding shall be suspended.
No arbitrator shall also serve as mediator in the same case. Agreement reached by the parties at any time
prior to the issuance of a final award shall result in the arbitrator issuing a
consent award and in termination of the matter. The parties may, at any time prior to the close of the hearings,
agree to minimum and maximum amounts to be awarded ("high-low") or to
"final offer" or other arbitration options.
22. JUDICIAL PROCEEDINGS
Upon written request
of a party, ADRC will furnish to such party, at its expense, any certification
of documents in its possession that may be required in a judicial proceeding
relating to the arbitration. Neither
ADRC, its officers, directors, employees or any arbitrator is a necessary party
in any judicial proceeding, nor shall any person or entity be liable in any way
whatsoever to any party, person or entity for act or omission arising under or
in connection with any arbitration conducted under these Rules.
23. INTERPRETATION/APPLICATION OF RULES
The arbitator shall
have the authority to interpret and apply these Rules. In the case of a three person panel, a
majority decision shall be required. If
a majority decision is unobtainable, ADRC will make the final determination.
FEES AND COSTS
The parties agree to
pay those fees, costs, and expenses established by ADR Center in its Fee
Schedule in effect at the time a case is submitted for arbitration. In addition, the parties agree to pay those
fees established by each arbitrator, as established prior to his or her
selection. The arbitrator may also
charge for participation in administrative conferences, rulings on motions
outside of hearings, study time in considering and rendering the award, and for
other time spent outside of hearings,
as well as charge for reimbursement of travel and other reasonable expenses
related to the case.
Upon submission of a
matter to ADR Center, the filing and hearing fees shall be calculated and the
amount of arbitrator fees will be estimated based upon the anticipated number
of hearing days. The parties shall each
pay their own filing fee, based upon the amount of their respective claims or
counterclaims, and hearing fees, and shall split equally all additional costs
and fees, including but not limited to arbitrator(s) fees and room rental fees,
unless required otherwise by contract or by agreement of the parties. The parties shall pay the amount so calculated
to ADR Center upon receipt, and prior to the commencement of the first
hearing. Any additional fees due,
resulting from additional hearing days, amended claims or counterclaims, or
otherwise, become immediately due and payable.
ADR Center reserves the right to suspend the hearings in the event of
non-payment. No awards will be rendered until all fees, costs and expenses are
paid in full.
In the event that the
final amount due for arbitrator fees, room rental fees, and other estimated
amounts is less than that estimated and prepaid, such unused amounts shall be
refunded to the applicable party, in accordance with the final award.
Hearing postponements
less than 24 hours prior to the scheduled time shall result in the cancelling
party being responsible for payment of
the entire hearing fee for that session and for payment of any other
postponement fees, including but not limited to room rental fees.
All amounts paid as
filing fees are nonrefundable.
Effective May 15, 2002
AMERICAN DISPUTE RESOLUTION
CENTER, INC.
FEE SCHEDULE
1. FILING FEE
The filing fees set
forth herein are based upon the amount of each parties' initial claim and
counterclaim, respectively. Such fees
may be increased or decreased as the parties amend or modify their claims or
amounts in controversy during the pendency of the case. The filing fees herein may also be subject
to increase should the demand or counterclaim contain significant non-monetary claims
or requests for awards, in the discretion of the American Dispute Resolution
Center, Inc. ("ADR Center"), based upon the facts, nature and the
significance of such claims. Where the
claim or counterclaim seeks a non-monetary award in its entirety, or where no
amount can be stated at the time of filing, the initial filing fee shall be not
less than $2,500.00, in the ADR Center's discretion, based upon the facts,
nature and the significance of such claims.
CLAIM FILING
FEE
$1 - $50,000 $ 750
$50,001 - $100,000 $1,500
$100,001 - $250,000 $2,500
$250,001 - $500,000 $5,000
$500,001 - $1,000,000 $7,500
$1,000,001 - $5,000,000 $10,000
$5,000,001 - $10,000,000 $15,000
$10,000,000 - $20,000,000 $20,000
over $20,000,000 $20,000
plus .05% of amount
exceeding $20,000,000
2.
HEARING FEE
A hearing fee shall be
assessed in the amount of $200.00 per party per hearing day.
3.
ARBITRATOR'S FEE
Arbitrator fees shall
be charged in accordance with each arbitrator's fee schedule, as he or she may
establish from time to time.
Arbitrators are independent contractors, not employed by ADR
Center. The arbitrator may also charge
on an hourly or per diem basis for participation in administrative conferences,
rulings on motions outside of hearings, study time in considering and rendering
the award, and for other time spent outside of
hearings, as well as charge for reimbursement of travel and other
reasonable expenses related to the case.
4.
MISCELLANEOUS EXPENSES
Hearing rooms are
available on a rental basis at rates of $100.00 per hearing day, on-site, or at
such rates as may be established by third parties, off-site. ADR Center reserves the right to charge for
overnight mail, and for photocopies, postage, telephone conferencing and other
expenses and disbursements beyond those of an incidental nature. Postponement fees and cancellation fees are
as set forth in the American Dispute Resolution Center, Inc.'s Rules of
Arbitration.