RULES OF ARBITRATION IN THE USA

RULES OF THE ICDR

The American Arbitration Association has an international division called The International Centre for Dispute Resolution (ICDR). This international division handles the cases brought before it by applying the rules of International Mediation and the Arbitration Rules, which deal with a wide variety of problems.

The Center offers the possibilities to potential parties to settle their disputes by means of Mediation or Arbitration. The Rules provide example of clauses for parties to insert in their contract should they want to attract de jurisdiction of the court, butthis does not exclude the possibility of the parties to refer a dispute to the ICDR postfactum. These rules are applicable no matter what dispute resolution means the parties choose.

An interesting fact is that the parties also have the option to organize a conference with the ICDR in order to best determine whether the services provided are the bestone for the parties and also to decide what rules of procedure shall apply.00

The Rules of the ICDR are flexible permitting the parties to choose the number of arbitrators and to name them or to allow the ICDR to appoint them accordingly. The process of appointing the arbitrators can also be decided by the parties accessing the lists of arbitrators that the Centre has available.

Regarding representation, the parties can be represented by any person independent of their quality as a legal advisor. Regarding the arbitrators and mediators they both have the obligation to be impartial and the duty to disclose potential conflicts of interest. A point of difference between the two is the fact that mediators have the obligation to solve the disputes before them basing themselves on the principles of self-determination.

One other point is that arbitrators, unlike mediators can be challenged. Both mediation and arbitration are private proceedings. Both are bound by the confidentiality agreement. No stenographic record shall be made of the mediation proceedings, while recording is still an option available in arbitration proceedings.

In both proceedings if the parties have not agreed to the language of the proceedings the language shall be that of the documents containing the mediation/arbitration agreement.

The costs related to the proceedings shall be split equally between the parties in mediation no matter the result, unless they have agreed otherwise. But in relation to arbitration the tribunal shall fix the costs of arbitration in its award and it will apportion the costs according to what is reasonable.

Parties will be required to make a deposit by the ICDR if the it deems it necessary. With arbitration, the administrator may request the claimant to make a deposit to cover the costs of arbitration.

As elements that differ mediation from arbitration we must mention that the award is binding for arbitration. In arbitration, parties can also make use of experts, different forms of evidence and the tribunal is the decider of its own jurisdiction andother aspects.

The two procedures differ fundamentally through the fact that mediation once chosen does not imply a mandatory award, while arbitration does. But both of them are procedures oriented at maintaining a good relationship between the parties and preserving the business between them.

There is no filing fee for mediation while arbitration has mandatory filing fees determined through the parameters set out in the Rules of Arbitration.