Commercial Rules
The parties shall be deemed to have made these rules a part of their arbitration agreement whenever they have provided for arbitration by the Arbitration Services, Inc. or under its commercial arbitration rules. These rules and any amendment to them shall apply when Arbitration Services, Inc. receives the demand for arbitration or submission agreement. The parties by written agreement may vary the procedures outlined in these rules.
1. Agreement of PartiesThe parties shall be deemed to have made these rules a part of their arbitration agreement whenever they have provided for arbitration by the Arbitration Services, Inc. or under its commercial arbitration rules. These rules and any amendment to them shall apply when Arbitration Services, Inc. receives the demand for arbitration or submission agreement. The parties by written agreement may vary the procedures outlined in these rules.
2. Name of Arbitration Panel
Any tribunal constituted by the parties to settle their dispute under these rules shall be called the commercial arbitration panel.
3. Administrator and Delegation of Duties
When parties agree to arbitrate under these rules or provide arbitration by the Arbitration Services, Inc., and an arbitration is initiated under these rules, they authorize Arbitration Services, Inc. to administer the arbitration exclusively. The authority and duties of Arbitration Services, Inc. are prescribed in the agreement of the parties and these rules and shall be issued by Arbitration Services, Inc. under these rules, as amended from time to time. The arbitrator shall be empowered to interpret and determine the application of all provisions under these rules, including the issue of arbitrability, and take appropriate action to obtain compliance with any ruling. The chief administrator shall be charged with administering cases arbitrated under these rules, and the chief administrator may appoint regional administrators and case administrators as needed.
4. Panel of Arbitration
Arbitration Services, Inc. shall establish and maintain a panel of arbitrators and shall appoint arbitrators as provided in these rules.
5. Local Offices
Arbitration Services, Inc. may, in its discretion, assign the administration of an arbitration to any of its local offices and will endeavor to give an arbitration to the local office closest to the claimant. If the arbitration agreement between the parties designates a particular venue, Arbitration Services, Inc. will assign the arbitration to its regional office most comparable to the platform set by the parties.
6. Initiating Arbitration by Demand, Answer, and Counterclaim
Initiation of arbitration, when provided for in the arbitration agreement, shall be initiated in the following manner:
(a) The initiating party (hereinafter claimant) shall, within the time, if any, specified in the arbitration agreement, give written notice to the other party (hereinafter respondent) of its demand to arbitrate (demand), which notice shall contain a statement setting forth the nature of the dispute, the monetary amount involved, if any, other relief sought, and
(b) Shall file at the office of Arbitration Services, Inc. an Original copy of the demand and a copy of the demand for each respondent with the agreement providing for arbitration, a detailed statement of claimant’s claim and factual allegations supporting the claimant’s position, together with the appropriate filing fee as provided for in the schedule of fees set forth herein.
(c) Arbitration Services, Inc. shall give notice of such filing to the respondent or respondents within five days.
(d) A respondent must file an answering statement in duplicate with Arbitration Services, Inc. within fifteen days after notice from Arbitration Services, Inc. In this event, the respondent shall at the same time send a copy of the answering statement to the claimant and any counterclaim the respondent may want to assert.
(e) If a counterclaim is asserted, it shall contain a statement setting forth the nature of the counterclaim, factual allegations supporting the respondent’s position, the monetary amount involved, if any, and any other relief or remedy sought. If a counterclaim is made, the appropriate fee provided in the schedule of fees herein shall be forwarded to Arbitration Services, Inc. with the answering statement and counterclaim.
(f) If no answering statement is filed within the stated time, the respondent shall be deemed to be in default.
(g) A party’s failure to pay the appropriate arbitrator fee requested by Arbitration Services, Inc. shall constitute a default, and the defaulting party’s claim, answer, counterclaim, or answer to the counterclaim shall not be considered.
(h) Failure to file an answering statement shall not operate to delay the arbitration.
(i) A counterclaim filed without the appropriate filing fee shall not be considered.
(j) A claimant may file an answer to the counterclaim by filing a statement of the claimant’s position concerning the counterclaim in duplicate with Arbitration Services, Inc. with a copy to the respondent any time prior to a hearing or within such time as the Arbitrator shall direct the Answer to Counterclaim be served. If an answer to the counterclaim is not filed, the claimant shall be deemed to deny the allegations of the counterclaim and the respondent’s right to any relief requested therein.
7. Initiating Under a Submission
Parties to any existing dispute may commence an arbitration under these rules by filing with Arbitration Services, Inc. three copies of a written submission to arbitrate under these rules, signed by the parties. It shall contain a statement of the matter in dispute, the monetary amount involved, if any, any other relief or remedy sought, factual allegations supporting the claimant’s and respondent’s position, and the hearing locale requested, together with the appropriate filing fee (or fees if a counterclaim is filed) as provided in the schedule of fees herein.
8. Change of Claims
After filing a claim, if either party desires to make any new or different claim or counterclaim, the claim or counterclaim shall be made in writing and filed in duplicate with Arbitration Services, Inc., and a copy shall be mailed to the other party, who shall have a period of ten days from the date of such mailing within which to file an answer with Arbitration Services, Inc. and a copy to the other party. Any amendment must be accompanied by the appropriate filing fee as provided for the schedule of fees herein. After the arbitrator is appointed, however, no new or different claim may be submitted except with the arbitrator’s consent.
9. Number of Arbitrators
Where the claim or counterclaim is $250,000.00 or less, there shall be one arbitrator. The claim or counterclaim that exceeds $250,000.00 shall have three arbitrators unless the parties request and consent to one arbitrator.
10. Qualifications of An Arbitrator
Arbitrators shall be fair and impartial. An arbitrator shall disclose to Arbitration Services, Inc. any circumstances that may affect impartiality, bias, or any financial or personal interest in the arbitration or any personal relationship with the parties, witnesses, or counsel. Arbitrators shall be appointed from Arbitration Services, Inc.’s panel of arbitrators, subject to recusal or disqualification. The chief administrator may serve as the arbitrator. In the event the parties request and consent to the appointment of an arbitrator, who is not on Arbitration Services, Inc.’s panel, such arbitrator shall first qualify for appointment according to Arbitration Services, Inc.’s rules for arbitrators, then in effect and agree to comply with Arbitration Services, Inc.’s rules and procedures. Notwithstanding such qualification, Arbitration Services, Inc. reserves the right not to appoint the arbitrator requested by the parties. The term “arbitrator” in these rules refers to the arbitration panel, whether composed of one or more arbitrators.
11. Appointment of Arbitrators
(a) Expedited arbitration involving disputes no greater than $250,000.00, exclusive of attorneys’ or other professional fees. Where neither a claim nor counterclaim seeks monetary damages exceeding $250,000, exclusive of attorneys’ or other professional fees. a single arbitrator shall be selected by Arbitration Services, Inc. and designated to conduct the arbitration proceeding. Arbitration Services, Inc. shall notify the parties of the designation of the single arbitrator and the parties shall have five days in which to notify Arbitration Services, Inc. of their objection for cause requesting the disqualification of the designated arbitrator in which event Arbitration Services, Inc. shall select another arbitrator to conduct the arbitration. If either party objects to the second appointed arbitrator, then an arbitrator shall be chosen per Rule 11b.
(b) Arbitrations involving disputes greater than $250,000.00, exclusive of legal fees, upon filing the demand for arbitration, Arbitration Services, Inc. shall select a single arbitrator. Within ten days of designating the arbitrator any party may, in writing to Arbitration Services, Inc. and all other parties to the proceeding, demand that a panel or 3 arbitrators be appointed. Upon receipt of such demand, Arbitration Services, Inc. sends each party an identical list of persons chosen from the panel. Within ten days after that, each party shall return the list to Arbitration Services, Inc., striking those names objected to and number the remaining names in order of priority of preference. A party may challenge three names without cause or explanation. Additional challenges for a reason shall be permitted, and the party making the challenge shall explain the nature of the objection. Arbitration Services, Inc. reserves the right to determine if the complaint is sufficient to disqualify the arbitrator. Arbitration Services, Inc. shall not disclose to arbitrators any objections or communication relating to the selection process. When returning the panelist, each party shall pay the required arbitration fee deposit specified in the notice to select arbitrators. A party who fails to return the list shall be deemed to have accepted all elected panel members. Failure to timely pay arbitrator fees shall constitute a default, and the defaulting party’s claim, or a counterclaim as the case may be, shall be dismissed. If additional panel members are needed, another list will be sent to the parties for selection within the time specified in the notice from Arbitration Services, Inc., which shall not exceed ten days.
(c) The arbitrator(s) shall file his or her (or their) oath of office with Arbitration Services Inc promptly after having been appointed and before assuming the duties of Arbitrator. Arbitration Services Inc shall designate a Chairman of the panel to coordinate the proceedings with the Chief Administrator.
12. Vacancies
If for any reason an arbitrator is unable to perform the duties of the office, Arbitration Services, Inc. may declare the office vacant. Vacancies shall be filled in accordance with the applicable provisions of these rules for the selection of arbitrators. In the event of a vacancy in a panel of three arbitrators after the hearings have commenced, the remaining arbitrator or arbitrators may continue with the hearing and determination of the controversy unless all parties agree otherwise and request that a new panel be appointed. In this event, the arbitrators who were previously selected will again submit to the selection process. Upon consent of all parties, arbitrators serving in the matter may continue without submitting to the selection process, and only the vacancy will be filled and the hearing continued.
The arbitrator shall set the date, time, and place for each hearing. Arbitration Services, Inc. shall send a notice of hearing to the parties at least ten days before the hearing date. Hearings that take more than one session shall, at the arbitrator’s discretion, be conducted day to day until completed. A party who requests an in-person hearing shall advance the estimated cost for the arbitrator’s fees for the in-person hearing for both parties, which fees may be allocated in the final award.
14. Representation by Counsel
Unless excused by Arbitration Services, Inc., a claimant or respondent asserting a counterclaim and any party who is an entity other than a natural person must be represented by an attorney at law who is admitted to practice in the locale where the arbitration is to be conducted, or where the arbitration agreement was made, or who is admitted to practice in any other state upon consent by Arbitration Services, Inc., which consent shall not unreasonably be withheld, and further provided that the jurisdiction in which the arbitration is being held does not prohibit attorneys not admitted in that jurisdiction from representing parties in arbitration proceedings. A natural person may appear pro se and may have an attorney at law appear at any time in the proceedings. An attorney appearing for a party shall note his appearance with Arbitration Services, Inc. All papers submitted to Arbitration Services, Inc. shall include the attorney’s firm name, the attorney responsible for the matter, office address, telephone number, fax number, email address, and identification number if required by the state in which the attorney is licensed to practice.
15. Discovery Proceedings
(a) Discovery proceedings that are available in the civil rules of practice in the state court jurisdiction where the arbitration proceeding is conducted may be available to the parties upon a party’s request at the discretion of Arbitration Services, Inc. or the arbitrator, if one has been appointed, and upon such conditions as Arbitration Services, Inc. or the arbitrator shall impose. Still, discovery shall not without good cause unduly delay the hearing schedule.
(b) In any arbitration involving a claim or counterclaim in which the amount in controversy exceeds $25,000, the parties shall be entitled to conduct discovery subject to such conditions and schedule as Arbitration Services, Inc. or the arbitrator shall direct.
Any party desiring a stenographic record, videotaping, or audio recording of any discovery proceeding or hearing shall make the arrangements in advance of the discovery proceeding or hearing and shall provide the other parties with copies thereof. The party requesting the transcript shall advance the cost of the transcript, record, tape, or recording, which expense may be allocated in the final award. A transcript taken, transcribed and certified by a party authorized by law to take and transcribe such transcript shall be permitted in evidence by the arbitrator if presented by either party without the necessity of execution by the witness.
17. Interpreters
Any party wishing an interpreter shall make all arrangements directly with the interpreter and assume the service’s costs. An attorney may not act as interpreter and attorney for the same witness without the arbitrator’s consent.
19. Postponements
The arbitrator for a good cause shown may postpone any hearing upon the request of a party or the arbitrator’s initiative.
20. Oaths
Before proceeding with the first hearing, an arbitrator shall take an oath of office and file the same with Arbitration Services, Inc. The arbitrator shall require witnesses to testify under oath or under penalty of perjury, such commitment to be administered by any duly qualified person or the arbitrator.
21. Awards
A single arbitrator shall render the award. Where there is more than one arbitrator, the recognition of the arbitrators must be by a majority unless the concurrence of all is expressly required by the arbitration agreement or by law.
22. Order of Proceedings and Communication with the Arbitrator
(a) Hearings shall be conducted in accordance with the terms of the arbitration agreement and these rules and upon request of a party, may be conducted via telephone, video, submission of papers or, if requested by a party and subject to Rule 16, in-person hearing. At least 5 days prior to commencement of the hearing, or in accordance with directions of the Arbitrator, the parties shall have filed their respective papers or shall be deemed to have waived further submission unless requested by the Arbitrator. A party who has failed to pay all required arbitration fees in advance of the hearing shall be deemed to have waived an in-person hearing or the right to call witnesses or submit papers. The arbitrator shall file his or her oath of office with Arbitration Services Inc.
(b) The arbitration shall commence with the arbitrator noting and recording the names and addresses of the parties and their counsel, the papers filed with Arbitration Services, Inc. and furnished to the arbitrator to be used in connection with the proceedings, the amount, and relief demanded by each party in their papers.
(c) The arbitrator may request or permit opening statements by the parties. A party represented by counsel shall participate only through counsel except as permitted by the arbitrator.
(d) The arbitrator shall then hear testimony from the witnesses in the following order: the claimant presenting its case first, the respondent’s defense, the claimant’s rebuttal, the respondent’s counterclaim, the claimant’s answer, and the respondent’s rebuttal. The order of testimony may be modified with the arbitrator’s consent. All parties shall be given the full opportunity to present all material and relevant evidence. Each witness shall be subject to cross-examination by all parties, and the arbitrator shall be permitted to question the witness directly.
(e) Upon the conclusion of testimony, the arbitrator may request or permit closing statements and the filing of post-hearing memoranda of law or such other evidence the arbitrator deems appropriate.
(f) There shall be no direct communication between the parties and the arbitrator other than at hearings unless the parties and the arbitrator agree otherwise. Any other oral or written communication from the parties to the arbitrator shall be directed to Arbitration Services, Inc. for transmittal to the arbitrator.
23. Arbitration upon a Party’s Default or in the Absence of a Party
(a) A party failing to comply with a ruling or order of the arbitrator or Arbitration Services Inc if an arbitrator has not been appointed, or pay any filing or arbitration fee or charge in a timely manner as required by these rules or directive, shall be deemed in default, and the arbitrator shall proceed as if such party is in default. A Party in Default may not present direct or rebuttal evidence or testify, but may cross-examine a witness or submit papers in opposition to evidence presented but not introduce evidence that has not been presented.
(b) Unless the law provides the contrary, the arbitration may proceed in the absence of any party who, after due notice pursuant to these rules, fails to appear at a hearing or is otherwise unable or unwilling to participate in the hearing.
(c) An award shall not be made solely on the default of a party. The arbitrator shall require the party who is present to submit such evidence as the arbitrator may need to make an award.
24. Evidence
(a) The parties may offer such evidence as is relevant and material to the dispute. They shall produce such evidence as the arbitrator may deem necessary to understand and determine the dispute. An arbitrator or other person authorized by law to subpoena witnesses or documents may do so upon the request of any party or independently.
(b) The arbitrator shall be the judge of the relevance and materiality of the evidence offered, and conformity to legal rules of the evidence shall not be necessary unless the arbitration agreement provides that the rules of evidence and substantive laws of a particular jurisdiction shall be observed and enforced, subject to the interests of substantial justice and economy of the arbitration proceedings. An arbitrator may receive affidavits of witnesses and papers certified by counsel as true copies of evidence. All testimony evidence shall be taken in the presence of all of the arbitrators and all parties, except where a party is in default in appearing or has waived the right to be present.
(c) When there is more than one arbitrator, Arbitration Services, Inc. shall appoint an arbitration chairman who shall rule on matters of procedure and evidence and whose rulings shall govern unless the majority of arbitrators request a different ruling on a particular matter, which request must be made at the time of the initial ruling.
25. Evidence by Affidavit or Other Evidence
(a) The arbitrator may receive and consider the evidence of witnesses by affidavit but shall give it only such weight as the arbitrator deems it entitled to after consideration of any objection made to its admission.
(b) If the parties agree or the arbitrator directs that documents or other evidence be submitted to the arbitrator after the hearing, the documents or other evidence shall be filed with Arbitration Services, Inc. for transmission to the arbitrator unless directed otherwise by the arbitrator. All parties shall be allowed to examine such documents or other evidence.
(c) Upon consent of the parties and the arbitrator, the arbitrator may decide the dispute on submission of documents only and without a hearing. Arbitration Services, Inc. or the arbitrator shall obtain the parties’ consent or counsel in writing that they waive a hearing and that the matter shall be decided on submission of documents only. All papers submitted to the arbitrator shall be served on adverse parties. The arbitrator may request additional records solely in the arbitrator’s discretion or ask that the parties appear for testimony before the arbitrator cannot render a decision on the papers only.
(d) Motions for any relief may be made only on the consent of Arbitration Services, Inc. or the arbitrator, if one has been appointed, and on such conditions as Arbitration Services, Inc. or the arbitrator may impose. Motions shall be decided by Arbitration Services, Inc. or the arbitrator or panel of arbitrators if appointed.
(e) Upon request of a party or witness and with the consent of Arbitration Services, Inc. or the arbitrator, if one has been appointed, a witness may appear at trial by telephone, video or submission of sworn affidavit or affirmation under penalty of perjury, on such conditions as Arbitration Services, Inc. or the arbitrator shall direct. The arbitrator shall swear in the witness, be examined and cross-examined, and the arbitrator shall give such weight to the testimony as the arbitrator shall deem appropriate. A witness’s request to appear by telephone or video must be made at least seven days before the trial notice to adverse parties. A witness must be able to receive copies of documents while testifying by telephone or video appearance. Witnesses appearing by telephone or video shall be responsible for telephone or video connection arrangements acceptable to the arbitrator and any expense connected with such appearance. A witness contesting the authenticity of a document or a signature on a document may not appear by telephone or shall be deemed to have waived objection to the document.
26. Inspection
An arbitrator may inspect the personal or real property after notifying Arbitration Services, Inc. and parties of the inspection’s date, time, and place. The arbitrator shall file a report of the inspection with Arbitration Services, Inc., who shall furnish copies to the parties. The parties shall be entitled to be present when the inspection is made and to file with the arbitrator comments to the report.
27. Interim and Injunctive Relief
(a) Interim Relief. Upon request of a party, the arbitrator may issue such interim orders as may be deemed necessary and equitable to maintain the status quo of the parties and safeguard the property that is the subject matter of the arbitration, without prejudice to the rights of the parties or the final determination of the dispute. A party who fails to comply with such interim order shall be deemed in default in the arbitration proceeding and the arbitration hearing may take place without such defaulting party’s participation or upon such other conditions the arbitrator deems appropriate.
(b) Injunctive Relief. Upon the commencement of the arbitration proceeding, either party may seek emergency injunctive relief. If an arbitrator has not yet been appointed in the proceeding, the administrator shall designate and appoint an interim arbitrator who shall all of the powers of an arbitrator in the case and shall continue to serve as a single arbitrator until an arbitrator is established pursuant to Rule 11 of these rules. The interim arbitrator may qualify as arbitrator if appointed according to Rule 11. If an arbitrator has been set in the case, then the application for emergency injunctive relief shall be made to the arbitrator.
(c) Enforcement of Interim Relief. A party awarded interim relief may enforce the interim award by seeking additional relief, including payment of attorney fees and monetary damages for a party’s failure to comply with an acting award. A party may also seek enforcement of an interim award, including injunctive relief, by application to a court of competent jurisdiction. A court award shall include an award of attorney fees for the emergency application to the arbitrator and enforcement in court and appropriate damages for a party’s failure to comply with an interim award. A party’s failure to comply with an interim award shall constitute contempt, and the right award for such contempt may be made by the arbitrator or court before whom the application is made.
28. Closing of Hearing
The hearings shall be deemed closed upon completing the testimony and filing of any post memoranda or papers permitted by the arbitrator.
29. Reopening of Hearing
Any time before rendering the award, the arbitrator may reopen a hearing to receive additional testimony or evidence sua sponte, or upon request of a party for good cause shown and upon such other conditions the arbitrator deems appropriate. A request to reopen a hearing made by a party shall be filed with Arbitration Services, Inc. and filed with the proper filing fee as provided in the schedule of fees herein to be considered. If reopened, a hearing shall be deemed closed upon the closing of the reopened hearing.
30. Waiver of Oral Hearing
The parties may provide, by a written agreement, for the waiver of the oral hearing in any case, in which case the arbitrator may make an award based on written submission by the parties deemed acceptable and satisfactory by the arbitrator. In the event a respondent fails to appear in the proceeding or a party who has appeared after that defaults, the arbitrator may make an award based on such written papers, including affidavits from parties with personal knowledge of the facts as the arbitrator deems appropriate.
31. Waiver of Rules
Any party who proceeds with the arbitration after knowledge that any provision or requirement of these rules has not been complied with and who fails to object in writing to Arbitration Services, Inc. shall promptly be deemed to have waived the right to object.
32. Extensions of Time
The parties with the consent of Arbitration Services, Inc. or the arbitrator, if one has been appointed and upon such conditions as Arbitration Services, Inc. or the arbitrator may impose, may modify any period by mutual agreement. The Arbitration Services, Inc. or the arbitrator may, for a good cause, extend any period established by these rules, except the time for making the award. The Arbitration Services, Inc. shall notify the parties of any extension.
33. Serving Notices and Papers
(a) Each party shall be deemed to have consented that any papers, notices, or process necessary or proper for the initiation or continuation of an arbitration under these rules; for any court action in connection therewith; or for the entry of judgment on any award made under these rules may be served on a party by mail addressed to the party or its counsel at the address filed by that party with Arbitration Services, Inc. or the last known address or by personal service, in or outside the state where the arbitration is to be held.
(b) Arbitration Services, Inc. and the parties may also use facsimile transmission, email, or other written forms of electronic communication to give the notices required by these rules.
(c) Any papers filed by a party with Arbitration Services, Inc. must show by affidavit or certification by counsel that service has been made on the other parties.
34. Time of Award
The award shall be made promptly by the arbitrator and unless otherwise agreed by the parties or specified by law, no later than 15 days from the date of closing the hearing, or, if oral hearings have been waived, from the date of Arbitration Services, Inc.’s transmittal of the final statements and proofs to the arbitrator.
35. Form of Award
The award shall be in writing and shall be signed by the single arbitrator or if more than one a majority of the arbitrators.
36. Scope of Award
The award may include monetary as well as equitable relief so as to achieve substantial justice. The award shall not include relief specifically prohibited by the arbitration agreement or the law of the jurisdiction in which the arbitration is venued, or the law of the jurisdiction governing the arbitration if other than the jurisdiction of the venue, or stipulation of the parties. Notwithstanding the foregoing, the arbitrator shall be permitted to award to a party counsel fees, expert witness fees, Arbitration Services, Inc. and arbitration fees, and expenses incurred in the arbitration for costs and disbursements in connection with discovery or the hearing.
37. Award Upon Settlement
If the parties settle their dispute during the course of the arbitration, the arbitrator may, upon request of the parties, reduce the stipulation to an award.
38. Delivery of Award to Parties and Confirmation of Award
(a) Parties shall accept as legal delivery of the award the placing of the award or a true copy thereof in the mail addressed to a party or its counsel at the last known address, personal service of the award, or the filing of the award in any other manner that is permitted by law.
(b) The parties shall comply with the award within ten days unless additional or other time is specified in the award.
(c) If a party fails to timely comply with the award, a party commencing a proceeding in a court of law to confirm or enforce the award shall be entitled to additional counsel fees for post-arbitration proceedings as the court may deem appropriate.
(d) Service of process in any action or proceeding to confirm an award may be made by United States Postal mail, postage paid, addressed to the attorney appearing for any party in the arbitration proceeding or addressed to the party at the address designated in the arbitration agreement, or by any other manner of service authorized by the law of the jurisdiction.
39. Release of Documents for Judicial Proceedings
Arbitration Services, Inc. shall, upon the written request of a party, furnish to the party, at the requesting party’s expense, certified copies of any papers in Arbitration Services, Inc.’s possession that may be required in judicial proceedings relating to the arbitration.
40. Applications to Court and Exclusion of Liability
(a) No judicial proceeding by a party relating to the subject matter of the arbitration shall be deemed a waiver of the party’s right to arbitrate unless the law of such jurisdiction deems voluntary participation in judicial proceedings to be a waiver of the right to arbitrate.
(b) Neither Arbitration Services, Inc. nor any arbitrator in a proceeding under these rules is a necessary or appropriate party in judicial proceedings relating to the arbitration.
(c) Parties to these rules shall be deemed to have consented that judgment upon the arbitration award may be entered in any federal or state court having jurisdiction thereof.
(d) Neither Arbitration Services, Inc. nor any arbitrator shall be liable to any party for any act, commission, or omission in connection with any arbitration conducted under these rules.
(e) The parties shall indemnify and hold Arbitration Services, Inc. and the arbitrator harmless from and against any claim, cause of action, expense, including counsel, expert witness fees, and expenses relating to the arbitration proceeding and/or defense of any action.
41. Administrative Fee
(a) Arbitration Services, Inc. shall prescribe filing and other administrative fees and service charges to compensate it for the cost of providing administrative services. The fees in effect when the fee or charge is incurred shall be applicable.
(b) All fees advanced by the parties are subject to final apportionment by the arbitrator in the award.
(c) Arbitration Services, Inc. may, in the event of extreme hardship on the part of any party, defer or reduce the administrative fees.
(d) Administrative fees are for each claimant and each counterclaimant. Claims or counterclaims setting forth multiple claims or theories of causes of action for the same relief are not considered separate claims for fee purposes.
42. Schedule of Fees
(a) Claim or counterclaim up to $5,000……………………………….$125
(b) Claim or counterclaim over $5,000 and up to $10,000……..$150
(c) Claim or counterclaim over $10,000 and up to $15,000……$175
(d) Claim or counterclaim over $15,000 and up to $20,000……$200
(e) Claim or counterclaim over $20,000 and up to $25,000……$225
(f) Claim or counterclaim over $25,000……….one percent of the amount claimed, up to a maximum fee of $65,000
(g) Reopening closed hearing……………………………………………$200
(h) Request for Corrected Award No Charge
(i) Request for Amended Award $300
(j) Request for Interpretive Award $300
43. Expenses
The expenses of witnesses and interpreters for such witnesses shall be paid by the party producing or requesting such witnesses. All other costs of the arbitration, including a hearing room, required travel and other costs of the arbitrator, Arbitration Services, Inc. representatives, and any witness, and the cost of any proof produced at the direct request of the arbitrator, shall be borne equally by the parties, unless they agree otherwise or unless the arbitrator during the arbitration in the award assesses such expenses or any part thereof against any specified party or parties.
44. Arbitrator’s Compensation
Arbitrators shall receive compensation as set forth herein. An arbitrator shall charge a rate consistent with the arbitrator’s stated rate of compensation. The amount charged by each arbitrator shall be specified with the information about such arbitrator when the list of panel members is sent to parties for arbitration selection or shall be filed with Arbitration Services, Inc. and made available upon request of a party. If no specific fee is requested in the panel member’s profile, then the arbitrator’s hourly fee shall be established and fixed by Arbitration Services, Inc. at the time of assignment. Arbitrators shall be compensated for preparation, review, and hearing time. Invoicing the parties and collecting the arbitrator’s compensation shall be performed by Arbitration Services, Inc. Any disputes regarding an arbitrator’s compensation shall be determined by Arbitration Services, Inc., which determination shall be conclusive.
45. Deposits
Arbitration Services, Inc. will require the parties to deposit in advance of any hearing such sums of money as Arbitration Services, Inc. deems necessary to cover the expense of the arbitration, including the arbitrator’s fee, and shall render an accounting to the parties and return any unexpended balance at the conclusion of the case. Failure to pay the deposit shall constitute a default.
46. Interpretation and Application of Rules
The arbitrator shall interpret and apply these rules insofar as they relate to the arbitrator’s powers and duties. When there is more than one arbitrator, the chairman shall make the ruling, subject to overruling by both of the other two arbitrators. Any dispute which cannot be resolved by the arbitrator shall be referred by the arbitrator or the parties to Arbitration Services, Inc. for final interpretation and resolution. All other rules shall be interpreted and applied by Arbitration Services, Inc.
47. Notice by Telephone
The parties shall accept all notices from Arbitration Services, Inc. by telephone and/or email. Such notices by Arbitration Services, Inc. shall subsequently be confirmed in writing, by mail, or fax to the parties. Should there be a failure to confirm in writing any notice hereunder, the proceeding shall nonetheless be valid if notice has, in fact, been given by telephone and/or email.
(a) Subsequent to rendering and delivering an award, at any time prior to the filing of proceedings in a court of law to confirm or reject the award, or upon remand by order of a Court to the Arbitrator for further proceedings, an Arbitrator shall retain jurisdiction and authority, on the Arbitrator’s own initiative or upon request of a party, to correct computational, clerical or typographical errors and shall thereupon deliver a Corrected Award to the parties. An Arbitrator shall not be entitled to additional compensation for the proceedings subsequent to the original Award unless a hearing is required in connection with a remand by a Court order.
(b) Within 15 days of rendering and delivering an award an Arbitrator shall retain jurisdiction and authority upon request of a party, to change or amend an Award, or make an additional Award and shall, within 15 of the request, deliver an Amended Award to the parties. An Arbitrator shall not be entitled to additional compensation for the proceedings subsequent to the original Award.
(c) Within 15 days of rendering and delivering an Award, upon request by a party, or any time upon remand by order of a Court to the Arbitrator for further proceedings, an Arbitrator shall retain jurisdiction to interpret the Award, and shall within 15 days of the request or remand, deliver an Interpretive Award. An Arbitrator shall not be entitled to additional compensation for the proceedings requesting an Interpretive Award unless a hearing is required in connection with a remand by a Court order.
Consumer Arbitration Rules Preamble
The Consumer Arbitration Rules are intended to provide a mechanism for a simplified arbitration procedure where either party is a consumer. For the purpose of interpreting these rules, a “consumer” shall be defined by the laws of the state where the individual resides but shall apply only to those situations where goods or services have been rendered to an individual for personal or household use.
The purpose of this consumer arbitration is to resolve disputes between parties utilizing the guiding principle of rendering substantial justice to the parties to the dispute. As such, strict enforcement of evidentiary rules may be modified or waived by the arbitrator. These Consumer Rules are intended to supplement the Commercial Rules and unless specifically addressed in these Consumer Rules the Commercial Rules shall apply.
Consumer Rules
R1. General Statement: A consumer-related dispute may be submitted to arbitration under these Consumer Rules where: (1) there is a written agreement between the parties authorizing the submission of the dispute to arbitration; or (2) where there is a state statute, law or rule which authorizes the submission of the dispute to arbitration. A “consumer” is defined by the laws of the state where the individual resides and is intended to apply to those instances where goods or services have been rendered to an individual for personal or household use. Where a consumer resides in a state that requires that arbitration hearings be conducted within the venue of the consumer’s residence
R1. General Statement: A consumer-related dispute may be submitted to arbitration under these Consumer Rules where: (1) there is a written agreement between the parties authorizing the submission of the dispute to arbitration; or (2) where there is a state statute, law or rule which authorizes the submission of the dispute to arbitration. A “consumer” is defined by the laws of the state where the individual resides and is intended to apply to those instances where goods or services have been rendered to an individual for personal or household use. Where a consumer resides in a state that requires that arbitration hearings be conducted within the venue of the consumer’s residence, it shall be sufficient that all in-person hearings be conducted within such venue, and arbitrations conducted by submission of papers, telephone, or video conducted by an arbitrator outside the venue shall be deemed sufficient compliance with the state venue requirement. An arbitrator need not be located within the consumer’s venue.
Read the commercial rules.
R2. Initiation of a Claim: The filing party (the “claimant”) is required to serve upon the other party (the “respondent”) a “demand” for arbitration and statement of claim, which shall be verified by the claimant and which shall be served in accordance with the subdivision(s) of this Rule 2. The demand for arbitration shall include the following information:
(a) The demand for arbitration shall state the name, address of the claimant and the name, address, phone, and email of the claimant’s attorney, if any, or the person signing the demand for arbitration; and
(b) The statement of claim shall provide a brief description of the nature of the dispute and shall have appended to the claim a copy of the underlying written document which claimant contends authorized the arbitration process; and
(c) The amount of money sought by the claimant; and
(d) Claimant shall pay the filing fee when filing the demand for arbitration with Arbitration Services, Inc., or the demand for arbitration may be dismissed; and
(e) The claimant “shall serve” a copy of the demand for arbitration and statement of claim on the respondent(s) at his, her, or their last known residence or business address by first-class mail deposited with the United States Post Office, postage prepaid. The claimant shall, within three days of serving the respondent, deliver to Arbitration Services, Inc. the original or true and exact electronic copy of the demand for arbitration and statement of claim, together with an affidavit, affirmation, or certification of service, together with the filing fee found in Rule 11. Service shall be deemed sufficient and complete upon delivery to the United States Postal Service.
R3. In the event respondent fails to serve an answer to the demand for arbitration, and these rules authorize Arbitration Services, Inc. to issue an award, the chief administrator of Arbitration Services, Inc. shall be authorized to render the award and shall be deemed to act as the arbitrator in the case.
R4. Respondent’s Answer: The respondent shall serve an answer to the demand for arbitration and statement of claim, which may include a counterclaim or set-off within 15 days of the service of the demand for arbitration by the claimant. The answer must be served upon the claimant or upon the claimant’s attorney if the claimant is represented by an attorney, by first-class mail, delivered to the United States Post office, postage prepaid, and within three days thereafter must be sent to Arbitration Services, Inc. by mail, electronically, or overnight mail, together with any filing fee required for the counterclaim, if any.
(a) The answer shall provide a brief statement of the nature of the respondent’s defense to the arbitration proceeding.
(b) If the respondent has asserted a counterclaim or set-off, the respondent must state the nature of the counterclaim or set-off, the amount involved, and the remedy sought.
(c) If no answer is served and filed within the stated time, the respondent shall be in default, and Arbitration Services, Inc. is authorized to render an award in the proceeding provided that at least five days prior to the date the answer is due, the claimant serves upon the respondent a proposed award. The proposed award may be served with the demand for arbitration or thereafter.
(d) In the event the respondent fails to pay the filing fee when filing an answer with a counterclaim, the counterclaim shall be dismissed. In the event the respondent fails to pay any other fee or charge, the respondent shall be deemed in default in the arbitration proceeding.
R.5 Appointment of Arbitrator: Upon receipt of the respondent’s answer, an arbitrator shall be appointed to determine the dispute. Either party may object to the appointment of the assigned arbitrator for cause within five days following the time that they are notified of the arbitrator’s appointment. The arbitrator appointed shall certify that there are no circumstances likely to affect his or her ability to render a fair and reasonable determination of the dispute based solely on the evidence produced and in accordance with the arbitration agreement and arbitration rules.
R.6 Expedited Resolution: Unless the claimant or respondent requests an in-person hearing, the arbitration may, at the discretion of the arbitrator, be conducted by submission of the papers, telephone, or video. A party may, in writing, request that the arbitration be conducted by an in-person hearing, provided that the party requesting the in-person hearing pay, at the time of the request, a deposit for the arbitrator fee of $350 or such other amount as Arbitration Services, Inc. shall require. Any party or witness may appear by telephone or video, notwithstanding the request for an in-person hearing. The request for an in-person hearing shall be deemed withdrawn if not accompanied by the deposit for the arbitrator deposit. There shall not be any pre-hearing discovery unless approved by the arbitrator except that upon request of either party at least five days before the arbitration hearing, all parties shall be required to serve upon the other parties and upon the arbitrator copies of all papers intended to be used at the time of the arbitration.
R.7 Hearing: The arbitration hearing shall be conducted within 40 days of the filing of the demand for arbitration with Arbitration Services, Inc. or within 15 days of service and filing of the respondent’s answer, whichever is earlier unless such time is extended by consent of the parties and consent of the arbitrator.
R.8 A party failing to comply with a ruling, request, or order of the arbitrator, or pay any filing or arbitration fee or charge in a timely manner, shall be deemed in default, and the arbitrator shall proceed as if such party is in default.
R.9 Arbitrator’s Award:
(a) Award: The arbitrator shall render his or her award in writing within fifteen (15) days following completion of the arbitration hearing. A true and complete copy of the award shall be mailed by first-class mail delivery to the United States Post Office, postage prepaid, to each party or their counsel, by Arbitration Services, Inc. within five (5) days thereafter. The award shall be consistent with the terms of the agreement to arbitrate and render substantial justice to the parties. The award shall be final and may thereafter be submitted for confirmation to a court of competent jurisdiction.
(b) Scope of Award: The award may include monetary as well as equitable relief so as to achieve substantial justice. The award shall not include relief specifically prohibited by an arbitration agreement or the law of the jurisdiction in which the arbitration is venued, or the law of the jurisdiction governing the arbitration of the other than the jurisdiction of the venue, or stipulation of the parties. Notwithstanding the foregoing, the arbitrator shall be permitted to award to a party counsel fees, expert witness fees, Arbitration Services, Inc. and arbitration fees and expenses incurred in the arbitration for costs and disbursements in connection with discovery proceedings authorized by the arbitrator or for the arbitration hearing, and legal fees and expenses incurred in any court proceeding challenging the arbitration.
(c) Award Upon Settlement: If the parties settle their dispute during the course of the arbitration, the arbitrator may, upon request of the parties, reduce the stipulation to an award.
(d) Delivery of Award to Parties and Confirmation of Award: (i) The parties shall accept as legal delivery of the award the placing of the award or a true copy thereof in the mail addressed to a party or its counsel at the last known address, personal service of the award, or the filing of the award in any other manner that is permitted by law. (ii) The parties shall comply with the award within ten days unless additional or other time is specified in the award. (iii) If a party fails to timely comply with the award, a party commencing a proceeding in a court of law to confirm, enforce, or oppose setting the award Arbitration Services, Inc. de, the prevailing party shall be entitled to additional counsel fees for post-arbitration proceedings as the court may deem appropriate. (iv) Service of process in any action or proceeding to confirm an award may be made by United States Postal mail, postage paid, addressed to the attorney appearing for any party in the arbitration proceeding or addressed to the party at the address designated in the arbitration agreement, or by any other manner of service authorized by the law of the jurisdiction.
R.10 Attorney’s Fees and Other Costs: Except where prohibited by the laws of the State of Respondent’s residence, the arbitrator, in his or her discretion, may award attorneys’ fees to the prevailing party where:
(a) The agreement between the parties authorizes an award of attorneys’ fees to the claimant; and/or
(b) Relevant State law authorizes attorneys’ fees in matters of the nature submitted to the arbitrator for determination. The arbitrator may also include in his or her award an award for interest and filing/hearing fees.
R.11 Filing Fees:
(a) An initiating fee of $125.00 shall accompany the filing of a demand for arbitration.
(b) No filing fee is required from the respondent to serve an answer unless the answer includes a counterclaim or demand for an in-person hearing, in which event the appropriate fee must be paid when the answer is filed with Arbitration Services, Inc. A counterclaim or in-person hearing demand shall be void unless accompanied by the filing fee.
(c) If either party demands that the arbitrator conduct an in-person hearing, he, she, or they shall pay the sum of $350.00, together with the written demand for an in-person hearing, in accordance with Rule 2. The arbitrator may require the party demanding the in-person hearing to pay an additional deposit where the arbitrator reasonably believes that the in-person hearing will exceed two (2) hours of prep, hearing, and post-hearing time.
(d) If the arbitrator determines that a hearing is required, the arbitrator may direct that either or both parties pay the required fees unless the arbitration agreement or all parties to the arbitration demand that the hearing is conducted via submission of papers, telephone, or video.
(e) If a party who is required to pay a fee fails to do so, the arbitrator may proceed as if the party is in default.
(f) Where a fee has been requested, and the appropriate fee paid, and the parties settle their dispute at least seven (7) days prior to the date scheduled for the hearing, the party paying the hearing fee shall be reimbursed the fee advanced. However, no refund shall be made where the matter is settled seven (7) or fewer days prior to the scheduled hearing.
(g) Reasonable adjournments of the hearing may be granted upon the consent of all parties or within the discretion of the arbitrator but may not extend the hearing date beyond 60 days from the filing of the demand for arbitration. Other than in emergency situations, where a party or parties request an adjournment less than 48 hours prior to the scheduled hearing, the party or parties requesting the adjournment shall, unless excused by the arbitrator, pay an adjournment fee of $125.00.
(h) Where a party against whom an award on default has been rendered requests, within ten days of the mailing of the award by Arbitration Services, Inc., that the default is vacated, the payment of an initial filing fee of $125.00 shall be paid with the request and shall accompany any other filing as provided in Rule 16. A request to vacate an award made after ten days may not be granted without reasonable compensation to the non-defaulting party as determined by the arbitrator. A request made to vacate an award after a proceeding has been commenced in a court of competent jurisdiction to confirm the award shall be denied unless consented to by the non-defaulting party and reimbursement of the non-defaulting parties’ legal expense in post-award proceedings as determined by the arbitrator.
(i) Arbitration Services, Inc. may, in its discretion, appoint a substitute arbitrator when the assigned arbitrator is unable to perform his or her arbitration services in accordance with these rules.
R.12 Amendment to Claim or Counterclaim: No amendment to any claim, the counterclaim, or set-off shall be permitted without either the consent of the arbitrator or the consent of all parties.
R.13 Adjournments: Adjournments may be granted solely by the arbitrator assigned in his or her discretion. The failure to grant an adjournment shall not prevent the arbitrator from rendering a determination based on the documentary or other evidence provided by the parties.
R.14 Stenographic Record: Arbitration Services, Inc. shall not provide stenographic or other record of the proceedings. Any party may make his, her, or their own arrangements to have a hearing stenographically recorded provided that prior notice is given to the other party.
R.15 Notices: Notices shall be given by Arbitration Services, Inc. by mail, telephone, email, or facsimile transmission, if mailed or sent to the last known address, telephone number, or email address of the parties or their respective counsel.
R.16 Vacating Defaults: A party against who a default award has been rendered may request that the default award be vacated. Such request shall be in writing and mailed to Arbitration Services, Inc. together with the applicable payments as provided in Rule 11. A copy of the respondent’s answer and proof of service on the claimant or his, her, or its attorney must accompany the respondent’s submission. A request to vacate an award made after ten days of the award is served may not be granted without reasonable compensation to the non-defaulting party as determined by the arbitrator. A request made to vacate an award after a proceeding has been commenced in a court of competent jurisdiction to confirm the award shall be denied unless consented to by the non-defaulting party and reimbursement of the non-defaulting parties’ legal expense in post-award proceedings as determined by the arbitrator.
