Rule 1. Purpose and Scope
1.1 These arbitration rules (the “Rules”) have been prepared, and will from time to time be modified, for the sole purpose of facilitating economy and expedition in the resolution of the disputes voluntarily brought into arbitration under the Rules.
1.2 In each instance where the Rules require interpretation and application the same will be undertaken, with due attention to fairness, so as to promote economy and expedition.
1.3 In all arbitrations undertaken pursuant to the Rules:
a. The parties will be deemed to have made the Rules a part of their agreement to arbitrate, except to the extent they have agreed in writing, or on the record during the arbitration hearing, to modify any of the Rules that permit such modification.
b. The version of the Rules published on at milesmediation.com at the time the arbitration is initiated shall apply.
1.4 The Rules will govern all aspects of arbitrations undertaken pursuant to the Rules, except that where the Rules are shown to conflict with any applicable rule of law.
Rule 2. Compliance
2.1 Whenever a party fails to comply with the Rules in a manner deemed by the Arbitrator or the Arbitration Panel to be material to the arbitration, the Arbitrator or the Arbitration Panel shall set a reasonable period for compliance and, if the party does not comply within the period set, may impose any remedy deemed appropriate, to include the issuance of an award on default. Prior to the entry of any such award on default, the Arbitrator or the Arbitration Panel may require the non-defaulting party to produce evidence and legal argument defaulting party’s presence or participation.
2.2 A party knowing of a failure on the part of any other party to comply with the Rules, and neglecting to state its objections promptly, waives any objection to any such failure.
Rule 3. Mediation
3.1 Should the parties determine at any time that they wish to mediate the dispute which is the subject to an arbitration pending under the Rules, they must engage as a mediator a neutral other than one appointed as an arbitrator in the arbitration.
Rule 4. Costs
4.1 The Arbitrator or the members of the Arbitration Panel appointed shall be compensated at an hourly rate or flat fee, as set by Miles and agreed to by the parties at the time of appointment. Compensation shall be for time spent in connection with the arbitration, including time spent reviewing the record. The Arbitrator or the members of the Arbitration Panel shall also be reimbursed for any travel and other necessary expenses, if any, at a rate agreed to in advance.
4.2 Miles shall establish the chargeable costs associated with the arbitration which shall include the fees and expenses associated with the service of the Arbitrator or members of the Arbitration Panel, and any administrative fees charged by Miles.
4.3 Unless otherwise agreed by the parties in writing, the Arbitrator or the Arbitration Panel may apportion the costs, fees and expenses associated with the arbitration, including the attorneys’ fees and expenses of a successful party, against an unsuccessful party, in any amount deemed reasonable, considering the circumstances of the dispute, the conduct of the parties during the proceeding, and the arbitration result.
Rule 5. Arbitration Commencement
5.1 Parties may undertake an arbitration pursuant to the Rules only if they have first entered into a written agreement to do so.
5.2 An arbitration undertaken pursuant to the Rules shall be deemed to have commenced upon the filing with the arbitration case manager at Miles Mediation and Arbitration (“Miles”), by the complaining party or parties (the “Claimant” or “Claimant”), of:
a. A notice demanding recovery in arbitration (“Demand for Arbitration”) from one of more other parties (the “Respondent” or “Respondents”).
b. Proof of service of the Demand for Arbitration on the Respondent or Respondents, stating the date and manner of service (the “Proof of Service”).
5.3 The Demand for Arbitration shall include, at least:
a. A complete copy of the agreement pursuant to which the parties have agreed to undertake an arbitration under the Rules.
b. The full names and addresses of: The Claimant or Claimants, their counsel, and the Respondent or Respondents.
c. A brief recitation of the nature of the dispute, the relief or remedy sought and the basis for same.
5.4 Within twenty (20) days of the date of service shown on the Proof of Service, the Respondent or Respondents shall file with the arbitration case manager at Miles and serve upon the Claimant or Claimants a brief notice of defenses (“Statement of Defenses”) including, at least:
a. Any general response to the Demand for Arbitration.
b. A general statement of the nature of the defenses to be raised.
c. Any claim for affirmative relief from the Claimant or Claimants (a “Counterclaim”), including all the information required by Rule 2.3.
5.5 Any Statement of Defenses which includes a Counterclaim must be accompanied by a Proof of Service of the Statement of Defense upon the Claimant or Claimants.
5.6 Within twenty (20) days of the date of service shown on the Proof of Service, the Claimant or Claimants shall file with the arbitration case manager at Miles and serve upon the Respondents or Respondents a responsive notice (“Reply”) pursuant to the terms of Rule 5.4.
5.7 Failure to file and serve the pleadings described in Rules 5.4 and 5.6 shall not delay the arbitration and in the event of such failure all claims set forth in the Demand for Arbitration and/or Statement of Defenses shall be deemed denied.
5.8 The arbitrator or arbitrators selected by the parties (the “Arbitrator” or “Arbitration Panel”) may request from the parties an amended pleading providing further detail as to any claims or defenses.
RULE 6. Arbitrator Selection
6.1 If the parties fail to reach an agreement in writing as to the number of arbitrators they wish to preside in the arbitration, Miles will designate the number of arbitrators.
6.2 If the parties fail to reach an agreement as to the selection of an Arbitrator or Arbitration Panel:
a. Miles will submit to the parties a list of three (3) candidates (if one arbitrator is to be selected), or a list of five (5) candidates (if a three-arbitrator panel is to be selected).
b. Each party shall strike one candidate from the list, with the Claimant or Claimants having the first strike.
c. Any party failing, without good cause, to strike one candidate within seven (7) days of receiving the candidate list from Miles will be deemed to have no objection to any candidate on the list.
d. The candidate or candidates not struck will be appointed by Miles as the Arbitrator or the Arbitration Panel.
e. Should any party have any objection for cause as to any candidate listed, Miles may designate a substitute candidate if, in its soles discretion, Miles determines a conflict of interest or other valid reason for substitution exits.
6.3 If, for whatever reason, should fail to render the agreed number of arbitrators, Miles shall appoint one or more arbitrators it deems qualified to fill any vacancy.
RULE 7. Arbitrator Service
7.1 The Arbitrator or the members of the Arbitration Panel shall be independent and impartial and shall engage in no ex parte communications with the parties or their counsel.
7.2 The Arbitrator or the members of the Arbitration Panel, by accepting appointment, shall be deemed to be bound by the Rules and any modifications agreed to by the parties with respect to any of the Rules that permit such modification.
7.3 The Arbitrator or the members of the Arbitration Panel shall promptly disclose to Miles and the parties any circumstances which may suggest bias, conflict of interest, and past or present relations with any party, that are likely to cause doubt regarding that arbitrator’s independence or impartiality.
7.4 Any party may, no later than ten (10) days after notice of appointment, challenge the Arbitrator or a member of the Arbitration Panel, should it believe circumstances exist that raise doubts as to that arbitrator’s independence or impartiality, by filing with Miles and serving on all parties a notice stating with specificity the reasons for the challenge.
7.5 In the event of a party challenge to the Arbitrator or a member of the Arbitration Panel, the other parties may, no later than ten (10) days after receiving notice of same, respond in writing to the challenge. Thereafter, Miles will, in its discretion, either accept or reject the challenge.
7.6 In the event of the resignation, death or successful challenge of the Arbitrator or a member of the Arbitration Panel or should the Arbitrator or a member of the Arbitration Panel fail to act, or in the sole determination of Miles is precluded in fact or in law from performing as an arbitrator, Miles will, in its sole discretion, appoint a substitute arbitrator.
7.7 Should the Arbitrator or a member of the Arbitration Panel be replaced pursuant to Rule 7.6, the replacement arbitrator will, after consultation with the parties, decide in her or his sole discretion whether any of the conferences or proceedings concluded to that date will be repeated.
7.8 The Arbitration Panel, once appointed, shall, in its sole discretion, elect one of its members to serve as the Chair of the Panel. The Chair shall have responsibility for the organization of all arbitration conferences, hearings and other proceedings.
7.9 The Arbitrator or the Arbitration Panel, once appointed, shall have the power to hear and determine jurisdictional challenges, which challenges may be raised by any party, at any time.
RULES FOR ARBITRATION PROCEEDINGS
Rule 8. General Proceeding Rules
8.1 The Arbitrator or Arbitration Panel may conduct all arbitration proceedings in any manner it deems appropriate, not inconsistent with the Rules.
8.2 In keeping with Rules 1.1 and 1.2, all arbitration proceedings shall be conducted in as expeditious manner as is reasonably possible, with the Arbitrator or Arbitration Panel, in consultation with the parties, setting time limits for each phase of all proceedings.
8.3 Consistent with Rule 4.1, no party or anyone acting on behalf of any party shall have any ex parte communication with the Arbitrator or member of the Arbitration Panel about any matter of substance related to an arbitration undertaken pursuant to the Rules. The parties will have routine access to the Miles arbitration manager for guidance as necessary.
8.4 Each and every aspect of the arbitration, including without limitation, all proceedings, discovery, hearing record, party filings and submissions, orders and awards, except as mandated by law or in connection with a judicial challenge to, or enforcement of, an award, shall be treated as confidential.
Rule 9. Organizational Proceedings and Actions
9.1 As soon as is practicable after appointment, the Arbitrator or Arbitration Panel will schedule an initial arbitration conference to include both the parties and their counsel for the purpose of preparing a comprehensive plan for all aspects of the arbitration, including the terms of a comprehensive scheduling order.
9.2 The Arbitrator or the Arbitration Panel may act by the issuance of orders to effectuate such interim measures as it deems necessary to preserve assets, conserve goods, or sell any perishable goods, pending the completion of the arbitration, to include the requirement that security be provided for the costs associated with such measures.
9.3 Once a hearing date has been set by the Arbitrator or the Arbitration Panel, in consultation with the parties, that date will not be modified except for good cause shown, as determined in the sole discretion of the Arbitrator or the Arbitration Panel.
9.4 Either on its own initiative or at the request of a party, the Arbitrator or the Arbitration Panel shall issue all such subpoenas as are authorized by law in aide of the production of materials and testimony in connection with the arbitration. Enforcement of all such subpoenas will have to be sought by the parties in courts of competent jurisdiction, pursuant to applicable law.
Rule 10. Discovery
10.1 The Arbitrator or the Arbitration Panel may permit and facilitate all discovery as it, in its sole discretion, deems appropriate, after consultation with the parties and in keeping with Rules 1.1 and 1.2.
10.2 The Arbitrator or the Arbitration Panel may enter any orders necessary to protect the confidentiality of proprietary information, trade secrets and other sensitive information disclosed in discovery or sought for entry into the record at the arbitration hearing.
Rule 11. Summary Adjudication
11.1 The Arbitrator or the Arbitration Panel will promptly entertain, in keeping with Rules 1.1 and 1.2, the parties’ motions for summary adjudication of any claim or defense, to include any such motions based upon the requested exclusion of evidence, filed and served timely in accordance with the terms of the scheduling order.
11.2 After reviewing any motion for summary adjudication, the Arbitrator or Arbitration Panel will, after consultation with the parties, determine whether to schedule a hearing for oral argument on such motion.
Rule 12. Arbitration Hearings and Evidence
12.1 The Arbitrator or the Arbitration Panel shall, after consultation with the parties, determine the manner in which the parties shall present their cases at the arbitration hearing, to include the manner in which witnesses are to be examined and the sequestration of witnesses.
12.2 The parties’ presentation of evidence shall include the submission of a pre-hearing memorandum including:
a. Statement of facts.
b. Statement of each claim or defense being asserted.
c. Statement of the applicable law upon which the party relies.
d. Statement of the relief requested, including the basis for any damages claimed.
e. Statement of the evidence to be presented, including the name, capacity and subject of testimony of each witness to be called, along with an estimate of the amount of time required for the witnesses direct testimony.
12.2 Arbitrator or the Arbitration Panel may examine witnesses and may require parties to produce evidence in addition to that offered at the arbitration hearing.
12.3 At the arbitration hearing, the Arbitrator or the Arbitration Panel shall not apply the rules of evidence used in judicial proceedings, with the exception of the attorney-client privilege and the work product immunity, but shall determine the applicability of any privilege or immunity, as well as the admissibility, relevance, materiality and weight of all the evidence offered.
12.4 Evidence may be presented in written or oral form as the Arbitrator or Arbitration Panel may deem appropriate.
12.5 At the arbitration hearing, the Arbitrator or the Arbitration Panel may either restrict or prohibit the presentation of evidence by any party that has failed to pay any outstanding fees or expenses owed to Miles.
Rule 13. The Arbitration Award
13.1 The Arbitrator or Arbitration Panel may make final, interim, interlocutory and partial awards. An award may grant any remedy or relief the Arbitrator or the Arbitration Panel deems just and equitable and within the scope of the agreement of the parties, including the specific performance of a contract. In regard to any interim, interlocutory or partial awards, the Arbitrator or Arbitration Panel may state in the award whether the award should be considered final, for purposes of any judicial proceedings in connection therewith.
13.2 All awards shall be in writing and shall state the reasoning on which the award rests, unless the parties agree otherwise. In the case of an award issued by the Arbitration Panel, the award shall be signed by at least a majority of the panel members.
13.3 A member of the Arbitration Panel who does not join in an award may issue a dissenting opinion, although such opinion shall not constitute a part of the award.
13.4 Executed copies of awards shall be filed with Miles by the Arbitrator or the Arbitration Panel. Awards will not be published to the parties until Miles has received full payment for all fees and expenses associated with the arbitration.
13.5 Within fifteen (15) days of its receipt of the award, either party, with notice to the other parties, may request the Arbitrator or Arbitration Panel correct in the award any purely computational, clerical, typographical, or similar type errors. Within thirty (30) days after the delivery of an award to the parties, the Arbitrator or the Arbitration Panel may make corrections sua sponte, along with any corrections requested by the parties deemed appropriate. All such corrections shall be in writing.
13.6 After the expiration of the thirty (30) day period provided in Rule 5.5, an award shall be final and binding on the parties and the parties shall undertake to carry out the terms of the awards without delay.
Rule 14. Document Retention
14.1 Miles shall not be required to maintain any official record of the arbitration and shall hold all materials submitted during the arbitration for only ninety (90) days after an award is issued.
14.2 Any materials not reclaimed by the parties by the end of this period will be destroyed.
Rule 15. Actions Against Miles or Arbitrators
15.1 Neither Miles, nor any arbitrators appointed under the Rules, shall be liable in damages to any party for any act or omission in connection with any arbitration undertaken pursuant to the Rules.
15.2 All parties to any arbitration undertaken pursuant to the Rules shall indemnify and hold Miles and the appointed arbitrators harmless from any claim, litigation or dispute arising directly or indirectly out of the arbitration or any proceedings thereunder, to include all costs, expenses, and attorneys’ fees, incurred directly or indirectly from any such claim, litigation or dispute.