Filing an Arbitration Action
An arbitration is a private dispute-resolution process that allows parties to resolve their disagreement in a private setting without the normal procedures of litigation. Normally, parties agree to arbitrate disputes in contractual provisions, but there are some instances when parties may agree to submit to arbitration after a dispute has surfaced. Although some parts of the arbitration process are similar to litigation, filing an arbitration action requires different steps than initiating litigation.
Before You File
Before filing an arbitration action, it is important that the party filing the proceeding make preparations for the action. First, it is important to carefully review an arbitration provision in a contract or some other arbitration agreement to see if the type of dispute between the parties can be submitted to arbitration. Next, it is important to determine if the other party will waive arbitration and proceed to litigation, and if this is the case, whether a litigation or arbitration would be preferable in a given situation. An experienced litigation and arbitration attorney should know when litigation or arbitration would be preferable in a particular situation.
The next consideration to evaluate is whether an arbitration organization has been specified in the agreement. There are a number of companies that provide arbitration services, and each of these organizations have different rules. Furthermore, arbitration organizations often have different rules depending on the type of dispute that is being resolved. In addition, arbitration agreements may specify that the arbitration occur in a set geographic area, so it is important to determine if a given arbitration organization includes arbitrators in that location. Experienced arbitration lawyers should have a sense of which rules apply to a given dispute, which can help parties initiate the arbitration process.
Pre-Arbitration Dispute Resolution
Before filing an arbitration action, it is also important to reach out to the other party to a dispute to see if the matter can be resolved before an arbitration is initiated. Arbitrations can often be a costly process, since the parties need to pay for the arbitrator out-of-pocket, and the threat of filing an arbitration may encourage parties to resolve a matter. In addition, arbitration rules may require that parties attempt to resolve a dispute before initiating the arbitration process. In any event, it often makes sense to attempt and resolve a matter before an action is instituted.
Filing an Arbitration Action
The process of filing an arbitration action is a little different than filing a lawsuit. Most lawsuits are filed using online electronic filing systems for the jurisdiction in which the lawsuit will be pending, although some types of lawsuits may need to be filed in person at a clerk’s office. Arbitration actions are usually filed online as well, but each arbitration service typically has their own filing process. Parties seeking to file an arbitration action should carefully review the rules of the arbitration service in which they hope to file the arbitration to ensure that an arbitration is properly initiated.
Parties must also submit different paperwork when filing an arbitration action than they would for litigation. It is not uncommon to submit a cover sheet when initiating litigation that informs the court of the types of claims the litigation involves and the relationship between the parties. Such forms for an arbitration may ask for preferred arbitrators and the amount of damages requested, which is not common with litigation. Whereas courts oftentimes charge one flat rate to file a lawsuit, arbitration services usually charge a filing fee based on the size of the matter and the type of dispute that is being arbitrated. Parties need to be careful to pay the appropriate fee, so the arbitration is not delayed. In addition, parties must usually file the contract or other agreement to arbitrate when initiating the arbitration so that the arbitration service can verify that the dispute to be arbitrated properly belongs in arbitration.
Next Steps
After filing an arbitration action, the arbitration service usually takes a few steps that are important in determining the course of the arbitration. The arbitration service usually mails the paperwork initiating the arbitration to the other side and make sure that other parties to the arbitration know about the proceeding. In addition, the arbitration service usually sends parties to the arbitration a list of arbitrators that may be considered to preside over a given arbitration. It is important to let the arbitration service know if any of the proposed arbitrators has a conflict of interest with any of the parties that might make it difficult for them to fairly preside over the arbitration. At this time, it is also important to let the arbitration service know if the parties have decided to mutually chose an arbitration to resolve the dispute between them. After settling on an arbitration, the parties then begin the process of exchanging documents and information so that everyone understands all of the details of the dispute that has been submitted to arbitration.
The Rothman Law Firm is experienced with arbitrations, and we know procedures related to filing an arbitration action and all other stages of resolving a dispute through arbitration. If you are looking for an experienced New York and New Jersey arbitration lawyer to handle your arbitration or other legal issue, please feel free to contact The Rothman Law Firm to request a free legal consultation.