{"id":877816,"date":"2015-08-13T06:51:41","date_gmt":"2015-08-13T12:51:41","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=877816"},"modified":"2015-08-12T11:55:54","modified_gmt":"2015-08-12T17:55:54","slug":"eight-things-you-need-to-know-about-the-aaas-new-construction-arbitration-rules","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/eight-things-you-need-to-know-about-the-aaas-new-construction-arbitration-rules\/","title":{"rendered":"Eight Things You Need to Know About the AAA\u2019s New Construction Arbitration Rules"},"content":{"rendered":"<p>Garret Murai | California Construction Law Blog | August 5, 2015<\/p>\n<p>I just finished a construction arbitration this past week, which also explains my sporadic posts as of late, sorry.<\/p>\n<p>Coincidentally, on July 1, 2015, the American Arbitration Association (\u201cAAA\u201d) implemented their newly revised Construction Industry Arbitration and Mediation Procedures.<\/p>\n<p>For those of you who follow our blog, you know I\u2019m not a big fan of arbitration, which, from my experience, doesn\u2019t deliver on its promise of better, faster, or cheaper, and ends up being pretty much the same thing as trial without the benefit of discovery, the rules of evidence, or appealability.<\/p>\n<p>The AAA is trying to change all of that though and in a news release announced that its new \u201cRules\u201d \u201cdirectly address preferences of users for a more streamlined, cost-effective, and tightly managed arbitration process that avoids the high costs of litigation.\u201d\u00a0Which makes\u00a0you\u00a0wonder whether they had to\u00a0survey their \u201cusers\u201d to come to this realization. But I digress.<\/p>\n<p>With the AAA\u2019s new Rules come eight new changes, as follows:<\/p>\n<p>Fast Track Procedures: Newly revised Rule F-1 now applies to two-party cases where no party\u2019s claim or counterclaim exceeds $100,000. Under old Rule F-1 the monetary cap was $75,000.<\/p>\n<p>Consolidation and Joinder: Newly revised Rule R-7 now requires that requests for consolidation (of other\u00a0arbitrations) or joinder (of parties) be submitted prior to the appointment of an arbitrator, or within 90 days of the date that the AAA determines that all administrative filing requirements have been satisfied, whichever is later. \u00a0Under old Rule R-7 there was no deadline for requests for consolidation or joinder.<\/p>\n<p>Preliminary Management Hearing: Newly revised Rule R-23 provides that the timing of a preliminary management hearing is \u201c[a]t the discretion of the arbitrator\u201d although it \u201cshould be scheduled as soon as practicable after the arbitrary has been appointed,\u201d and provides that at the hearing \u201cthe parties and arbitrator should be prepared to discuss and establish a procedure for the conduct of the arbitration\u201d and refers to new Rules P-1 (General) and P-2 (Checklist) for specific issues\u00a0to be considered. New Rules P-1 and P-2 modify the issues to be considered under old Rule R-23.<\/p>\n<p>Emergency Measures of Protection: New Rule R-39 allows a party to apply for emergency relief such as a temporary restraining order,\u00a0requires the AAA to appoint a single emergency arbitrator within one (1) business day of receipt of the application, and requires the emergency arbitrator to establish a schedule for consideration of the arbitrator within two (2) business days of appointment.<\/p>\n<p>Pre-Hearing Exchange and Production of Information:\u00a0Newly revised Rule R-24 provides that an arbitrator \u201con application of a party or on the arbitrator\u2019s own initiative\u201d may: (a) Require the parties to exchange documents on which they intend to rely at the hearing; (b) Require the parties to update their exchanges as such documents become known to them; (c) Require the parties, in response to reasonable document requests, to make their documents available to the other party; and (d) Require the parties, when documents are maintained in electronic form, to make such documents available in the form most convenient and economical for the party producing those documents unless the arbitrator orders otherwise. Old Rule R-24 simply provided that at the request of any party or at the discretion of the arbitrator the arbitrator could direct the production of documents and other information and the identification of any witnesses to be called.<\/p>\n<p>Mediation:\u00a0Newly revised\u00a0Rule R-10 provides that, in all cases where a claim or counterclaim exceeds $100,000, the parties shall mediate their dispute, subject to a party\u2019s ability to \u201copt out\u201d of mediation unless their agreement requires mandatory mediation. Under old Rule R-10 mediation was voluntary by the parties.<\/p>\n<p>Dispositive Motions: New Rule R-34 permits an arbitrator, upon prior written application, to consider motions that dispose all or part of a claim, or narrow the issues in a case.<\/p>\n<p>Sanctions: New Rule R-60 permits an arbitrator, upon a party\u2019s request, to order appropriate sanctions if a party fails to comply with its obligations under the Rules or with an order of the arbitrator.<\/p>\n<p>Want to learn more? AAA\u2019s new Rules can be found here.<\/p>\n<p>via <a href=\"http:\/\/calconstructionlawblog.com\/2015\/08\/05\/eight-things-you-need-to-know-about-the-aaas-new-construction-arbitration-rules\/\">Eight Things You Need to Know About the AAA\u2019s New Construction Arbitration Rules | California Construction Law Blog | Wendel Rosen<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Garret Murai | California Construction Law Blog | August 5, 2015 I just finished a construction arbitration this past week, which also explains my sporadic posts as of late, sorry. Coincidentally, on July 1, 2015, the American Arbitration Association (\u201cAAA\u201d) implemented their newly revised Construction Industry Arbitration and Mediation Procedures. For those of you who&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/eight-things-you-need-to-know-about-the-aaas-new-construction-arbitration-rules\/\">Continue reading <span class=\"screen-reader-text\">Eight Things You Need to Know About the AAA\u2019s New Construction Arbitration Rules<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[41,14],"tags":[8631,280,12],"class_list":["post-877816","post","type-post","status-publish","format-standard","hentry","category-arbitration","category-construction-2","tag-aaa-construction-arbitration-rules","tag-aribitration","tag-construction","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Eight Things You Need to Know About the AAA\u2019s New Construction Arbitration Rules - Advise &amp; 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