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Arbitration Procedures
The Arbitration Hearing
Most hearings are conducted in a conference room at an AAA regional office. A stenographer is present, if requested. (Note: The requesting party generally bears the cost.) The arbitrator introduces the parties and typically asks each side to briefly summarize its version of the dispute and what each intends to prove at the hearing.
The complainant's case is presented first. Witnesses are called to give testimony (usually under oath). After witnesses finish speaking, they are usually cross-examined by the opposing party's lawyer. They may also be questioned by the arbitrator. The complainant introduces all its witnesses, documents, and affidavits until it has finished presenting its side of the case.
The opposing party then introduces its witnesses and documents to defend its case and/or prove damages. After the opposition has concluded its case, both sides are usually requested to make a brief summary of the facts (i.e., what they felt was proved at the hearing). Sometimes the arbitrator may request that legal briefs be submitted that summarize the respective position of the parties before rendering a final decision.
Arbitrators are generally required to render written decisions within 30 days unless the parties agree to some other time period. The arbitrator can make any award that is equitable. She can order the losing party to pay additional costs, including AAA filing fees and arbitrator fees. Legal fees may be awarded if the arbitration clause so provides. See page 279 for an example Award of Arbitrator.
Arbitrators volunteer their time for hearings lasting under two full days; they are paid a reasonable per diem rate (up to $750) for additional hearings. If the parties settle their dispute prior to a decision, they may request that the terms of the settlement be embodied in the consent award.
Arbitrators have no contact with the parties after the hearing is concluded. The parties are notified in writing by the AAA administrator and are sent a copy of the award. The decision in a typical employment case is brief - usually no formal reasons are given to explain why a particular award was rendered or the basis on which damages were calculated.
Copyright 1998 Steven M. Sack
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