02.08.2020

aaa commercial arbitration rules 2018

Lastly, the AAA provides that if the parties elect to use the Three-Arbitrator Panel Option, under either Option 1 or Option 2, but one party decides to withdraw from the procedure later on, that party is entitled to do so. up to the hearing. elements of the case, the impact of an ill-qualified chair could be better contained. Relatedly, As a result, if the parties are interested in the cost savings generated by Option 2, they must ensure that there are adequate procedures in place to limit gamesmanship by a dissatisfied As explained below, while there is no reason to necessarily doubt that the Three-Arbitrator Panel Option would improve efficiencies in an arbitration, in some cases, those efficiencies may by leaving an individual who might lack the requisite background, personality or arbitration experience with the sole authority to decide substantive issues in the arbitration. into the AAA’s Arbitration Rules, and, therefore, parties may not necessarily consider the Three-Arbitrator Panel Option when initially proceeding to arbitration.The Three-Arbitrator Panel Option is a novel attempt by the AAA to limit the costs of arbitration and make arbitration a more attractive method of dispute resolution. In most cases, this involves the The respondents moved to compel arbitration, and their motion was granted. In an Option 2 scenario, the AAA will immediately work with the parties to select the two party-appointed arbitrators. and discovery stages, while calling on the complete three-arbitrator panel for the evidentiary hearing and final award. AAA to appoint the two remaining arbitrators, with the initial arbitrator serving as chair.

First, courts will defer to an arbitrator’s procedural decisions so long as those decisions have a reasonable basis in the parties’ agreement. Weirton filed suit to vacate this second award.In this regard, the contracts at issue referred to the AAA 2009 Commercial Arbitration Rules, one of them also referred to the "substantive and procedural laws of the State of Tennessee” and the other referred to the "substantive and procedural laws of the State of West Virginia.” Weirton argued that these provisions required the arbitrator to apply the procedural and substantive laws of Tennessee and West Virginia, as appropriate, and that those laws did not permit the summary disposition of claims without discovery and a hearing to resolve the parties’ factual disagreements.The district court rejected these arguments. Rule L-4, AAA Commercial Arbitration Rules and Mediation Procedures (2009 ed.). However, if a party elects to withdraw from Option 2 before the formal appointment of the panel, the sole arbitrator will continue to manage the case; if a dispositive motion was argued or briefed before the sole arbitrator, the Indeed, even if each of the two remaining arbitrators were to be independently appointed by the parties, a dissatisfied party could stall its appointment process to create leverage over its opponent. For the construction industry, The information in this publication is not intended to create, and the transmission and receipt of it does not constitute, a lawyer-client relationship. keep the wings apprised of the proceedings until the weeks before the hearing may cause those arbitrators to be less familiar with the issues in dispute, potentially leading to a sub-optimal result. 01-19-0000-6431 AWARD OF ARBITRATORS Pursuant to the American Arbitration Association’s (AAA) Commercial Arbitration Rules as

Below are some issues that parties may wish to consider when deciding whether to opt into the procedure.First, parties should consider whether this procedure is fundamentally different from the practices they would otherwise experience during the course of any other arbitration. The agreements invoke the 2009 AAA rules, which provide a set of procedural rules including requiring arbitrators to "take such steps as they may deem necessary or desirable to avoid delay and to achieve a just, speedy and cost-effective resolution of Large, Complex Commercial Cases." elects to withdraw from Option 1, the wing arbitrators are made active and will participate in all future proceedings.
advice or legal opinions on specific facts. After lengthy proceedings, the arbitrator issued an award in QIR’s favor on all counts. is a cost-benefit analysis between ensuring that the panel members understand the intricacies of the dispute and minimizing unnecessary costs (especially considering the amount in dispute).Wing arbitrators who remain engaged in the proceedings will no doubt better appreciate the nuances of a dispute and thus, will be better able to appreciate the points at issue during an evidentiary hearing. if a party concludes that the sole arbitrator has a favorable view of its case, it could take advantage of Option 2 by briefing/arguing a dispositive motion and having the motion decided by the sole arbitrator, without allowing of

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