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Overview
Arbitration has become widespread, both within the United States and
internationally. To meet this demand, several organizations offer
arbitration services in a variety of forms, under various sets of rules.
Federal Arbitration (FedArb) is an arbitration service formed to provide
some benefits of arbitration -- speed, confidentiality, cost-efficiency,
customization, and enforceability -- while also offering the benefits of
litigating in the federal courts of the United States -- ample discovery,
principled decision making based on law, with optional appellate review
designed to correct error and to prevent arbitrary conduct.
In general, FedArb's Rules provide for the
application in all proceedings conducted under its auspices of the
Federal Rules of Civil Procedure ("FRCP"), the Federal Rules of Evidence ("FRE"),
and the Federal Rules of Appellate Procedure ("FRAP"), subject to
modification by agreement of the parties. FedArb will maintain a list of
Participating Arbitrators, or to propose individuals as arbitrators who both
qualify as and agree to become Participating Arbitrators.
In addition to ensuring the highest possible
quality of performance from its Participating Arbitrators, FedArb will
provide administrative services to ensure the timely disposition of motions
and cases. Unjustified delays, such as those sometimes experienced in the US
federal courts, are prohibited under the FedArb Rules; Participating
Arbitrators contractually undertake to comply with all time deadlines
imposed by these Rules or agreed to by the Parties. Parties requiring
efficient dispositions of major and complex litigation will find in FedArb
an effective vehicle for accomplishing those objectives, thereby avoiding
costs and uncertainties that often far exceed the costs of a normal
proceeding. High ethical standards of conduct will be required of all
Participating Arbitrators, and will be enforced through contracts empowering
FedArb to resolve ethical disputes.
In light of FedArb's purposes and design,
parties considering arbitration should choose FedArb for disputes requiring
comprehensive litigation services, and consistently high quality and
efficient dispositions. The cost of FedArb proceedings will make economic
sense in cases with relatively high economic stakes in which predictability
and timeliness are weighty concerns.
Governance FedArb is governed by its
Board of Directors. The FedArb
Board appoints a FedArb Council consisting
of no fewer than five Participating Arbitrators. FedArb will negotiate
agreements with parties wishing to obtain its services. Each proceeding will
be administered by FedArb personnel, acting as support staff to the
arbitrator or panel handling the proceeding, and also ensuring compliance
with these Rules and FedArb agreements. Any issues that arise during the
administration of proceedings that cannot be resolved among the parties,
arbitrators, and FedArb personnel will be submitted to the FedArb Council
for final determination. The Council will have exclusive authority to remove
Participating Arbitrators from matters assigned to them for any material
failure to perform in accordance with these Rules or their agreements with
FedArb, and to remove them from the list of Participating Arbitrators for
good cause.
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