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FREQUENTLY ASKED QUESTIONS ABOUT ARBITRATION

Following are answers to frequently asked questions about mediation. If you have any questions not answered here, please do not hesitate to CONTACT us and we will make every attempt obtain the requested information for you. You can learn more about the steps to take to establish a mediation or arbitration practice on our History of Alternative Dispute Resolution page.

Q. What is arbitration?

A. Arbitration is a final, and binding resolution of a dispute by a person called an "arbitrator" or "Neutral", or a panel of three or more "neutrals". The courts of the majority of jurisdictions uphold the binding nature of an arbitrator's judgment to the same extent that they up hold a ruling by a judge.

Q. What types of disputes can be arbitrate?

A. Nearly any type of dispute can be arbitrated. This includes contractual disputes, shareholder disputes, claims rising from injuries caused by automobile accidents, domain name disputes, tort and civil rights cases, etc..

Q: Who serves as a neutral or arbitrator?

A: A Neutral is an impartial person who is selected by either the parties or their designated ADR forum to resolve their conflict. A Neutral Arbitrator is an impartial person assigned to hear and decide a case. For some suggested ways to select your arbitrator, click here. The Neutral Arbitrator takes the place of the judge and jury by performing the tasks usually assigned to them, IE: hearing the facts, applying the law and making an award. In most cases the neutral is a lawyer and/or a person having expertise in the subject matter that is in dispute. Depending on the type of case, come jurisdictions have minimal qualifications or criteria that must be met by those acting as arbitrators in that area. Additionally, alternative dispute resolution (ADR) forums, may have qualifications and criteria for the individuals serving as arbitrators of disputes filed with their forum.

The GAMA E-Directory, Arbitration, contains an ever growing data base of persons who will perform the role of arbitrator of your dispute for a fee. The Arbitration E-Directory is searchable by city, subject matter expertise, credentials and licenses, hourly rate, video conferencing capacity and other search parameters. GAMA makes no warranties or guarantees regarding the information in the Arbitration E-Directory because GAMA does not screen the information submitted to it by the ADR neutrals listed there. These neutrals pay for a listing with GAMA, and are not affiliated with GAMA, Inc., in any role or capacity. The GAMA "Arbitrator Listing Form" does contain a place for each neutral to list referrals and it is recommended that you do call other sources and verify the information given before relying upon it to hire anyone to help you resolve your conflict.

Q. How is the neutral selected?

A. There are many different ways to select a neutral. First, the parties can agree upon the person they want to act as the arbitrator of their dispute. Second, the parties may be committed by an arbitration clause in a contract to let the arbitrator of their dispute be selected according to the rules of the alternative dispute resolution (ADR) forum designated in the same clause. These ADR forums typically permit the parties to rate their preference of neutrals from a list of available persons, then one that is the most preferable to both parties, or the least objectionable to both parties, is selected to the parties' arbitrator. Third, the parties can agree to follow some other process for selection of their arbitrator. An example of such voluntary process would be where both sides select a neutral and these neutrals cooperate to select the person who will serve as arbitrator of the parties' dispute. For more suggestions on how to select an arbitrator, click here.

Q. What is an arbitration award?

A. An arbitration award is a decision of the neutral finding for and/or against a party and is made in writing. In most jurisdictions, the neutral is not required to render a written explanation of his/her decision with the award.

Q. Is the award of the neutral legally enforceable?

A. Yes, the award of the neutral is, with rare exception, legally enforceable in the court of the state or country having jurisdiction over the dispute.

Q. Can I arbitrate a current dispute when there is no contractual arbitration clause?

A. Yes, arbitration of a current dispute may be accomplished by having all parties to the dispute sign an Agreement to Arbitrate. GAMA has a sample form "Agreement to Arbitrate", GAMA Form #103, available in GAMA's Form Bank. To see this sample form, click here. Please note that here are statute of limitations that may prohibit you from filing for arbitration on a claim after the passage of a certain amount of time, just like they would prohibit filing a lawsuit. It is recommended that you consult an attorney in your jurisdiction when you first have knowledge that you may have a claim requiring resolution or when you first receive a demand for arbitration so that you may properly respond.

Q. How do I initiate arbitration if my current contract has an arbitration clause?

A. If your current contract has an arbitration clause, but does not name an ADR forum, then, to initiate arbitration, you simply serve a "Demand for Arbitration" on the other side. In order to achieve a viable record of service, it is also recommended that you send a copy of your demand by certified mail. You can also file your demand with an ADR forum, and serve a copy of it on the other side. A sample form "Demand for Arbitration", GAMA's form #101, is available from GAMA's Form Bank, click here.

Please note that GAMA is a compilation of E- Directories and not an ADR forum. These forums typically require the initiating party to pay a filing fee, and require both parties to share in "administrative costs," which can be quite hefty. In return, the ADR forum provides the process the parties use to select the arbitrator and conduct the arbitration and provides a physical location for the arbitration. GAMA.com and affiliated sites serve as an information resource for parties to disputes and ADR professionals.* If you want to avoid paying filing fees and administrative costs when resolving your dispute, and you and the other party can agree upon the arbitrator, or a method to select the arbitrator, then you may save several hundred dollars or more.

Q. Do I need to hire an attorney to represent me during arbitration.

A. While in the majority of states, there is no requirement that either corporations or individuals be represented by an attorney at an arbitration or mediation, different states do have different requirements regarding the timing and content of arbitration demands and responses. There are statute of limitations that may prohibit you from filing for arbitration on a claim after the passing of a certain amount of time, just like they would prohibit the filing of a lawsuit. Similarly, there are time requirements for filing a response to a demand for arbitration that must be met. It is recommended that you consult an attorney in your jurisdiction when you first have knowledge that you may have a claim requiring resolution or when you first receive a demand for arbitration so that you may properly and timely respond.

Q. What is an arbitration claim?

A. An arbitration claim is a statement of injury together with a request for compensation in either an estimated or certain dollar amount, and/or that the other party perform or quit performing some act. A claim is presented by the initiating party in his/her Demand for Arbitration and by the responding party in his/her Response to Demand or by either or both parties in their Agreement to Arbitrate. To see sample GAMA forms #101 and #103, click here. Because different states do have different requirements regarding the timing and content of arbitration demands and responses and there are statute of limitations that may prohibit you from serving a demand for arbitration after the passing of a certain amount of time, it is recommended that you consult with an attorney in your jurisdiction when you first have knowledge that you may have a claim requiring resolution or when you first receive a demand for arbitration so that you may properly and timely respond.

Q. Who is the responding party?

A. The responding party is the party who responds to a demand for arbitration, by filing a Response to Demand. The responding party may or may not include a claim for compensable injuries with his/her response. If the initiating party has filed his/her claim with an ADR forum, the forum will usually have a response form for the responding party to utilize in making his/her defense and asserting his/her claims. For cases where no ADR forum is identified in the contract documents, and the initiating party has not filed with a particular ADR forum, the responding party can serve a document like "Response to Demand", GAMA Form document #102. To see this sample form, click here. This response document may or may not included a claim or counter-claim for compensable injuries. Because different states do have different requirements regarding the timing and content of arbitration responses and counterclaims it is recommended that you consult with an attorney in your jurisdiction when you first receive a demand for arbitration so that you may properly and timely respond to it.


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