The American Arbitration Association (AAA), which handles over 100,000 disputes each year, recently issued revisions to its Commercial Arbitration Rules. The changes take effect on October 1, 2013.
The most significant rule change involves the addition of mediation. While any party can opt out of the mediation process at any time, all cases with claims in excess of $75,000 will be required to mediate their dispute at some time during the arbitration process.
Other key rule changes revolve around the arbitrator’s authority to manage the arbitration process, including:
Discovery: The new rules are intended to reign in discovery during arbitration. They give the arbitrator greater control over the scope of information exchanged “with a view toward achieving an economical resolution, while also balancing each party’s ability to present their case.” The new rules also address the exchange of documents in electronic format.
Preliminary hearings: The new rules provide that a preliminary hearing should be scheduled as soon as practicable following the appointment of the arbitrator. Logistical issues to be discussed include the location and timing of hearings, the identities of key witnesses and the exchange of discovery. The arbitrator must issue a written order memorializing decisions made or agreements reached during the hearing.
Emergency relief: The new rules formalize the process for obtaining injunctive relief. They provide that a party may seek emergency relief by notifying the AAA and the other parties to the arbitration. The AAA will then quickly appoint an emergency arbitrator who will promptly establish a schedule for consideration of the relief sought.
Dispositive motions: The new rules specifically grant arbitrators the authority to make rulings upon a dispositive motion provided the moving party has shown that the motion is likely to succeed and to dispose of or narrow the issues in the case.
Sanctions: The new rules authorize the arbitrator to order sanctions at the request of a party where another party fails to comply with its obligations under the rules or with an order of the arbitrator.
If you have any questions about the arbitration rule changes or would like to discuss how they may impact your business, please contact me, Robert Levy, or the Scarinci Hollenbeck attorney with whom you work.
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York
No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
