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Arbitration Rules And Procedures
1. Agreement to Arbitrate. The parties agree to abide by these rules provided by Pinnacle Arbitration & Mediation Services (Pinnacle) as part of their arbitration agreement. Such rules shall be those then in effect at the time the request for arbitration is received by Pinnacle. By agreement of the parties these rules and procedures may be modified.
2. Fees. Pinnacle shall charge an administrative fee to cover the cost of providing full service to the parties. Such administrative fee shall be paid by the initiating party at such time as the claim is submitted. The arbitrators bill at an hourly rate which is set forth in the Arbitration Contract and are entitled to compensation for all time spent on the matter, including pre-hearing conferences, hearing and travel time, research and time spent deliberating and procuring the award. All fees and expenses will be split between the parties unless otherwise agreed at such time as the claim is submitted or pursuant to the Arbitration Contract. Nothwithstanding such agreement or any award of fees or costs, the parties and/or their attorneys/representatives shall be jointly and severally liable for payment of fees and expenses and all payments for fees must be received prior to the issuance of any arbitration award.
3. Arbitration Submission. Once a dispute has been submitted to Pinnacle, we will send explanatory materials and preliminary documents to all parties involved. Based on information received from the parties, including a brief explanation of the dispute and the amount in controversy, Pinnacle will estimate the length of the hearing and request a deposit and/or collect fees in advance, which shall be in addition to any administrative fee paid upon submission of the claim. Failure to pay such fees in advance by the initiating party may be deemed a withdrawal of such proceeding in the discretion of Pinnacle and may result in a cancellation or postponement of the proceeding Arbitration proceedings are private and confidential to the extent allowed by law. Parties will be required to sign an arbitration contract prior to the commencement of the proceeding thereby confirming their agreement to arbitrate and their respective liability for the fees and costs incurred for same.
4. Modifying Submission. After a dispute has been submitted for arbitration, if a party desires to change or modify the issues therein, the opposing side shall be notified in writing and a copy shall be filed with Pinnacle. The opposing side shall have ten days from the date of notice, excluding weekends and holidays, in which to respond. If an arbitrator has already been appointed and the parties cannot agree regarding a change or modification of the issues, then no changes or modifications will be accepted without the arbitrator’s approval.
5. Appointment of Arbitrators. If the parties have not appointed an arbitrator at the time of submission, the following procedure will apply. Only one arbitrator shall be assigned to a case, unless an agreement, clause or contract specifies otherwise, or at Pinnacle’s discretion. Pinnacle will provide the parties with a list of arbitrators at the time the case is submitted. Parties are encouraged to agree to an acceptable arbitrator. However, if the parties are unable to agree, each shall strike up to half of the arbitrators from the list provided by Pinnacle. The remaining arbitrators should be numbered in order of preference. Pinnacle’s administrator will then select the acceptable arbitrator based on the parties’ numerical preference. Pinnacle's administrator will then select the acceptable arbitrator based on the parties' numerical preference. The Pinnacle administrator may impose time limits for the parties to return the arbitrator panel. If the time allowed is not met, Pinnacle may deem that party to have no preference among the arbitrator panel. Parties are encouraged to use more than one arbitrator on large or complex cases exceeding $300,000. On cases where a three-member panel is specified or requested, the above method will be used to determine two arbitrators and those two selected arbitrators will choose the third arbitrator, who will act as chairperson. The above notwithstanding, if the parties agree to a different method, Pinnacle shall exercise their wishes.
6. Arbitrator Panel. An arbitrator selected by the parties can, at their own discretion, turn down a request to participate, without cause. Upon appointment of the arbitrator, he/she shall disclose to Pinnacle any conflicts, personal or financial interest in the outcome of the arbitration, or any past or current relationship with the parties or their authorized representatives. Pinnacle shall then notify the parties. If a party objects to the arbitrator, a different arbitrator will be appointed based on the arbitrator list previously submitted or, in the case of a three-member panel, by the two remaining arbitrators. Arbitrators and Pinnacle administrators shall have immunity from any legal action by parties based on the arbitration. The arbitrators are independent contractors and not agents or employees of Pinnacle.
7. Arbitration Clause. When a case is submitted because a contract or agreement has an arbitration provision, the initiating party should contact Pinnacle and submit a copy of the contract or agreement. Upon receipt of the contract, Pinnacle will provide the initiating party with the appropriate materials to proceed. The initiating party shall be responsible for notifying the opposing party within the specified time period, if any of its intention under the contract to submit to arbitration. The notice shall include the nature of the dispute, the amount involved, if any, and the relief sought. The opposing party shall have ten (10) days to respond to such notice and Pinnacle will proceed with the arbitration as stated in Rule #2. Neglecting to respond to such notice will not stay the arbitration process.
8. High-Low. Parties may wish to stipulate to a High/Low agreement which may be attached to the arbitration contract. This supplemental agreement will not be disclosed to the arbitrator by either party or by Pinnacle, unless otherwise stated in writing. The parties must mutually agree upon the figures that are inserted in the agreement. If the arbitrator awards below the low figure, the award shall be the agreed upon low figure. If the arbitrator awards above the high figure, the award shall be the agreed upon high figure. Any award in between the high/low figures shall be the award. Pinnacle will provide the parties with appropriate forms.
9. Setting of Hearing. As part of Pinnacle’s administrative service, each party shall be contacted to set a
date, time and location that is mutually convenient for all parties. A notice of confirmation shall be sent to the parties along with a copy of the executed arbitration contract at least ten (10) days prior to the scheduled hearing, unless agreed otherwise by the parties. Pinnacle must have received the executed arbitration contract before setting the hearing date, unless prior arrangements have been made. In some situations, it may be necessary to schedule a pre-hearing conference with the arbitrator to determine the issues to be resolved, or any other relevant matters to expedite the arbitration process.
10. Representation. All parties must be represented by an attorney or an authorized representative. This may be waived at the discretion of the parties and Pinnacle.
11. Absence of a party. An arbitrator may proceed with the arbitration in the absence of any party or representative who has been made aware and notified of such hearing, unless the law provides to the contrary. An award will not be made solely on the grounds of a party failing to appear. The attending party will be required to produce evidence sufficient for an award to be rendered.
12. Postponements. With good cause, an arbitration hearing can be postponed at the request of a party. However, if a hearing is postponed more than two times, the party requesting postponement will be charged $300.00. The arbitrator(s) or Pinnacle shall approve or deny postponements.
13. Conduct of Proceedings. The parties shall have a full and equal opportunity at the hearing to present any material and relevant evidence. However, the arbitrator shall conduct the hearing at his or her sole discretion. The hearing shall be private and confidential to the extent allowed by law. The arbitrator may require witnesses to testify under oath. The arbitrator may require parties to submit documents or answer questions prior to the hearing. Arbitration hearings are conducted similar to court trials, except arbitration hearings are less formal. At the opening of the hearing, the arbitrator may ask the parties to clarify the issues to be decided. Each party shall make an opening statement, present their evidence, question and cross-examine witnesses and make closing statements. Conformity to legal rules of evidence is not required. Typically, the parties agree to waive certain rules of evidence and to proceed less formally. This is common and acceptable when there is agreement between the parties. The arbitrator has authority to determine all issues and matters in controversy in the dispute. Any person having a direct stake in the arbitration is permitted to attend the hearing.
14. Submitting Evidence. The parties may offer evidence to the arbitrator that is relevant to the dispute. They may include evidence of witnesses by affidavit. Arbitrators may accept evidence that may not be allowed by judges in court; however, the arbitrator(s) shall give to the evidence only such weight as he or she deems it entitled. (Testimony of witnesses is usually more convincing than hearsay evidence, and facts accompanied by documents and exhibits have more validity than by argument alone.) Discovery is available to all parties and the parties shall act in good faith regarding same. The parties should voluntarily exchange all non-privileged documents and relevant evidence. If a discovery issue remains in controversy the arbitrator shall decide the matters according to the applicable rules of evidence, and in the event that there is more than one arbitrator a majority of the selected panel shall make such decisions regarding discovery and submission of documents and evidence. All documents that the parties wish to submit to the arbitrator prior to the hearing must be sent to Pinnacle, which will forward it to the arbitrator. The opposing side shall be copied. All evidence that the parties wish to present to the arbitrator at the hearing must be exchanged between the parties as early as possible. From time to time, an arbitrator may deem it necessary to investigate or inspect a particular element in connection with the arbitration. The parties will be notified by Pinnacle of the date and time the inspection or investigation will take place. The parties have the right to be present and, if unable to attend, the arbitrator will prepare a written report to the parties. The arbitrator may make interim orders, if necessary, for the preservation and protection of assets as may be deemed appropriate.
15. Arbitration by written submission. Parties may agree to submit a dispute to Pinnacle by written submission without a hearing. Rules #4 and #5 will be used for arbitrator selection
16. Stenographer/Interpreter. A party may have a stenographer or interpreter present during the arbitration and shall make all arrangements directly with said service provider and further shall be responsible for any costs in relation to said services.
17. Communication with Arbitrator. No party is allowed to directly communicate with the arbitrator without the consent of the opposing party and Pinnacle. Any written or oral communication from the parties to the arbitrator must be directed to Pinnacle and will be forwarded to the arbitrator, with a copy mailed to the opposing party.
18. Adjournment. After the parties have had the opportunity to present opening arguments, present
evidence, cross-examine the opposing side, and finalize with closing arguments, the arbitrator shall ask whether there is any further evidence or witnesses to provide. If the parties respond negatively, the arbitrator shall declare the hearing closed. In some situations the arbitrator or the parties may request additional documents or evidence be submitted for consideration after the hearing. Such documents or evidence should be sent to Pinnacle which will forward it to the arbitrator, unless other arrangements have been made. Each party shall submit a copy to the opposing party.
19. Award. The arbitrator, or a majority of the arbitration panel, if applicable, shall sign and submit the award in writing to Pinnacle, which shall immediately forward it to the parties by first class mail. Arbitrators are not required to make written opinions or explanations with their awards; however; the parties may specify in writing, prior to the hearing, how detailed they want the award to be. If only one party requests a written explanation of the award, the requesting party shall do so prior to the award being rendered, and must pay for the additional arbitrator time involved in preparing the written explanation. The arbitrator shall have the authority to assess the total cost of the arbitration fees against one party as part of the award, unless the contract states, or the parties agree otherwise. The arbitrator may grant any award or relief deemed just and equitable including, but not limited to, specific performance on a contract, interest at such rate and from such date as deemed appropriate and an award of attorney’s fees if requested or authorized by law or an arbitration agreement. Unless otherwise agreed by the parties or extraordinary circumstances prevent same, the award shall be made promptly by the arbitrator, no later than thirty (30) days after the date the hearing is closed and concluded.
20. Waiver of Rules. Any party who proceeds with the arbitration after knowledge that any provision or requirement of these rules has not been satisfied, and who fails to state an objection in writing, shall be deemed to have waived the right to object.
21. Binding. Arbitration is final and binding, and the parties shall be deemed to have agreed that judgment upon the arbitration award may be entered in any federal or state court having jurisdiction thereof.
22. Exclusion of Liability. Pinnacle, its employees and arbitrators shall not be liable to any party for any negligence, act or omission in connection with the processing, administration or hearing conducted under these rules.
Copyright1998, Pinnacle Arbitration & Mediation Services/Revised 6/07
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