FAQ's
What
is Arbitration?
Arbitration
is a form of alternative dispute resolution (ADR) in which
the parties agree to submit their dispute to an arbitrator
rather than a court. The arbitrator considers the evidence
and makes a binding decision (the “award”).
A party may confirm and enforce the award in any court with
jurisdiction.
What
are Some Possible Advantages of Arbitration?
Arbitration
may offer several advantages in resolving a dispute. First,
it may resolve the dispute more quickly than a lawsuit.
Second, it may be less expensive than litigation, particularly
if the arbitration rules provide for a more streamlined
discovery process. Third, unlike litigation, arbitration
is generally a private matter so that arbitration documents
are not available to the public. Fourth, arbitration may
allow the parties to select an arbitrator whereas the parties
to a lawsuit have no say in which judge hears their case.
Fifth, the parties may select an arbitrator with expertise
in the area that is the subject of the dispute. Finally,
it is normally quite difficult for the parties to overturn
the arbitrator’s decision in court, and consequently
the potential for a lengthy appeal process is low.
Are
there any Disadvantages with Arbitration?
There
may be. Generally, in arbitration, the right to engage in
discovery (e.g., take depositions or issue interrogatories
to other parties) is more limited, but this limited discovery
usually results in reduced costs and attorney’s fees.
There is no right to a jury trial in arbitration. For a
party that is not satisfied with the arbitrator’s
award, the difficulty of successfully challenging the award
in court may be seen as a disadvantage. Finally, most jurisdictions
do not require the arbitrator to be a lawyer or to have
any legal education, and the result may be that the parties
sometimes have a non-lawyer arbitrator attempting to interpret
complicated legal documents, statutes, and reported court
decisions.
What
Procedural and Evidentiary Rules Govern the Arbitration?
Reputable arbitration services have procedural rules that
govern their arbitrations, and some also have evidentiary
rules. These rules vary greatly. Therefore, it is important
that a party considering entering into an agreement that
contains an arbitration clause first review the applicable
rules. RMAS has created arbitration rules that are simple
and flexible. To view the RMAS rules, go to Arbitration
Rules.
How
and When Do the Parties Present Their Evidence to the Arbitrator?
At
RMAS this depends on whether the parties have agreed to
Internet Arbitration, a Telephonic Hearing, or an In Person
Hearing. It may also depend, to some extent, on whether
the parties have agreed to any procedures to govern their
arbitration. When there is a Telephonic Hearing or In Person
Hearing, the party that initiated the arbitration (“Claimant”)
presents evidence first. Other parties may cross-examine
any witness called by the Claimant, and may present their
own documents and witnesses. The Claimant may cross-examine
witnesses called by any other party. The arbitrator may
also question any witness. The RMAS rules purposely
give the arbitrator great flexibility in deciding what evidence
will be helpful. All parties should be prepared to make
a focused presentation so the arbitrator may conduct an
efficient and productive hearing.
How
Long Will the Hearing Last?
The
hearing will generally last no longer than one day.
When
There is an In Person Hearing, Where Will that Take Place?
The
parties may agree to any reasonable location. The hearing
may take place at our offices in Boulder or Nederland, Colorado,
or at the place of business of one of the parties, or at
some other agreed upon location. If the parties cannot agree
on a location, the arbitrator will decide it.
What
Rules of Evidence Does the Arbitrator Apply?
RMAS does not use the strict rules of evidence that apply
in court. The arbitrator may accept or reject evidence that
the arbitrator believes will help in deciding the dispute.
May
a Person or Entity Represent Itself in Arbitration Without
a Lawyer?
Yes,
but arbitration impacts the legal rights of the parties
and we strongly encourage the parties to seek counsel. A
person or entity that represents itself in arbitration without
counsel must comply with the RMAS rules just as the lawyers
for a party must. A party not represented by counsel should
not expect the arbitrator to treat that party differently
than parties with counsel.
How
Long Does the Arbitration Process Take?
The average arbitration, from the start
to the issuance of an award, takes three to six months;
however, if all parties agree to a different timeline, RMAS
will try to accommodate that.
What
if One Party Fails to Participate in Arbitration?
If
a party that is required to participate fails to participate,
the arbitration will go forward. The party that participates
must still present evidence to the arbitrator, and if the
arbitrator is satisfied that the party is entitled to relief,
the arbitrator will issue an award.
Does
RMAS Offer Mediation Services?
We
do not seek mediation cases because Mr. Cohen believes his
skills are best suited to consideration of evidence, analysis
of legal issues, and providing a well-written, easily understandable
arbitration award. That said, we understand that the positions
of the parties may change as the arbitration process moves
forward. If all parties to an want to postpone the hearing
or modify the arbitration timetable so that they may pursue
mediation, the arbitrator will approve that request.
May
the Parties Settle Their Dispute Prior to the Hearing or
the Award?
Yes.
The parties may settle their dispute at any time prior to
the hearing, and they may even settle it after the hearing
at any time before the arbitrator issues an award. The parties
must promptly notify the arbitrator of the settlement in
writing or by email. The arbitrator will direct the parties
to submit a settlement agreement signed by all parties.
Unless otherwise agreed by the parties, the arbitrator retains
jurisdiction to decide any disputes arising out of the settlement
agreement.
How
May the Prevailing Party Enforce the Award?
Once
the arbitrator makes a written award, any party may ask
any court with jurisdiction to confirm the award. Once confirmed,
the prevailing party may enforce the award as a judgment
of the court.
Why
Should We Choose RMAS Over Some Other Arbitration Service?
There
may be cases where RMAS is not the rigth choice; however,
five reasons to consider RMAS are that (1) our services
are relatively inexpensive, (2) many business disputes arise
out of poorly written transactional documents, and Mr. Cohen
has expertise in language and the law governing construction
of documents and evidentiary issues in such cases, (3) Mr.
Cohen has expertise in certain areas of the law and limits
his arbitration practice to those areas, (4) RMAS has designed
arbitration rules that are simple and flexible, and (5)
our fee structure is simple.
Why
is RMAS Less Expensive Than Larger Arbitration Services?
There
are several reasons, but the most significant one is that
we are headquartered in a 3,000 square foot building in
Nederland, Colorado, approximately 18 miles west of Boulder
and 45 minutes west of Denver. Our overhead is low.
How
May the Parties Choose RMAS as the Arbitrator?
In some cases the parties may have agreed to an arbitration
clause that requires them to submit the dispute to RMAS.
If the arbitration clause does not specify any arbitrator,
RMAS may serve as the arbitrator if all parties so agree
in writing. View Sample Arbitration
Clauses.