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.
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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