Mediation & Arbitration / 1 min read
For the first time since 2015, the American Arbitration Association (AAA) has revised the rules applicable to Construction arbitration and mediation. Major highlights include:
- Consolidation and joinder must be filed before the Arbitrator is appointed. Additionally, If a party joined under Rule R-7 fails to pay its deposit, the party that sought joinder shall be responsible for payment subject to later apportionment.
- The AAA now has authority to limit the number of strikes.
- Arbitrators, including the Panel Chair, must be appointed from the AAA national roster unless otherwise agreed.
- Video options are now available.
- Cost is now a component in determining whether leave will be granted for dispositive motions.
- Arbitrators now have the ability to "clarify" their awards in addition to clerical, typographical, technical, or computational errors. Reconsideration of the merits is still prohibited.
- The threshold for a three-arbitrator Panel for large, complex disputes has increased to $3 million.
- Fast Track rules are now applicable to claims exceeding $150,000.
- A case may be removed from Fast Track if discovery is allowed.
- If the parties request a reasoned award, abbreviated opinion, or findings of fact and conclusions of law, the case will be removed from Fast Track and the arbitrator may charge regular rates.
If you have not reviewed your contractual arbitration clause recently, now is a good time to do so.