{"id":884152,"date":"2015-10-14T06:16:35","date_gmt":"2015-10-14T12:16:35","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=884152"},"modified":"2015-10-13T17:25:39","modified_gmt":"2015-10-13T23:25:39","slug":"new-rules-make-construction-arbitration-more-attractive","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/new-rules-make-construction-arbitration-more-attractive\/","title":{"rendered":"New Rules make Construction Arbitration more Attractive"},"content":{"rendered":"

Advise & Consult, Inc. | October 14, 2015<\/p>\n

The American Arbitration Association (AAA)<\/a> implemented new Construction Industry Arbitration Rules this past summer. The changes eliminate certain gaps or ambiguities in the old rules, create some additional tools with which arbitrators can manage claims, and on balance, should make arbitration<\/a> a more attractive forum for the resolution of construction disputes. Some of the more significant changes include the following:<\/p>\n

\u2022 R-7 \u2013 Consolidation or Joinder: The new joinder rule imposes a time frame within which requests for joinder must, absent good cause for delay, be submitted. This should reduce delay and costs associated with untimely joinder requests.<\/p>\n

\u2022 R-10 \u2013 Mediation: This new rule requires mediation in \u201call cases where a claim or counter-claim exceeds $100,000[.]\u201d Ideally this change will facilitate earlier resolutions, although parties may opt out of this requirement, assuming their underlying contract does not require mediation.<\/p>\n

\u2022 R-23 \u2013 Preliminary Management Hearing: The old Rule 23 was prescriptive in terms of the necessity of a case management hearing and the issues to be addressed at this hearing. The rewritten Rule 23 introduces greater flexibility into the preliminary hearing. The new rule provides that the hearing will be held at \u201cthe discretion of the arbitrator[,]\u201d which he or she may choose to exercise \u201cdepending on the size and complexity of the arbitration.\u201d The rule further stresses that the parties should establish a schedule that is designed to be \u201cfair, efficient, and economical\u201d and, while it does not mandate the topics to be discussed, it refers to new rules P-1 and P-2 for topics to be considered. In short, the Preliminary Management Hearing concept is not new, but flexibility has been introduced in a way that may allow for a more efficient and cost effective process in some cases.<\/p>\n

\u2022 R-24 \u2013 Pre-Hearing Exchange and Production of Information: As revised, this rule now makes clear that the arbitrator can, on his or her \u201cown initiative,\u201d impose discovery requirements on the parties. Moreover, section (b)(iv) of the rule specifically addresses documents maintained in electronic form. As a result, the Construction Arbitration rules now better reflect the reality of contemporary business recordkeeping. Notably, this rule provides that the arbitrator may require that electronic material be made \u201cavailable in the form most convenient and economical for the party in possession of such documents[,]\u201d and that the arbitrator may determine \u201creasonable search parameters to balance the need for production of electronically stored documents . . . against the cost of locating and producing them.\u201d<\/p>\n

\u2022 R-25 – Enforcement Powers of the Arbitrator: This rule provides explicit enforcement mechanisms to facilitate the arbitrator\u2019s ability to act effectively with regard to the two preceding rules (R-23 and R-24). As indicated, the \u201carbitrator shall have the authority to issue any orders necessary to enforce the provisions of rules R-23 and R- 24[,]\u201d this authority includes: a) the right to enter confidentiality orders; b) the right to establish \u201creasonable search parameters for electronic and other documents;\u201d and c) the allocation of costs for the production of documents and electronically stored material.<\/p>\n

\u2022 R-34 \u2013 Dispositive Motions: This rule is new and specifically allows the arbitrator to entertain motions that \u201cdispose of all or part of a claim,\u201d or otherwise \u201cnarrow issues in a case.\u201d<\/p>\n

To finish reading this article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Advise & Consult, Inc. | October 14, 2015 The American Arbitration Association (AAA) implemented new Construction Industry Arbitration Rules this past summer. The changes eliminate certain gaps or ambiguities in the old rules, create some additional tools with which arbitrators can manage claims, and on balance, should make arbitration a more attractive forum for the… Continue reading New Rules make Construction Arbitration more Attractive<\/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],"tags":[42],"class_list":["post-884152","post","type-post","status-publish","format-standard","hentry","category-arbitration","tag-arbitration-2","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nNew Rules make Construction Arbitration more Attractive - 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