Rule A-1 Glossary:
(a) “Advisory Board” means a committee of three (3) members, consisting of the President of CAMS and two other neutrals on CAMS’ roster of neutrals who are appointed by the President from time to time to serve on the Advisory Board.
(b) “Answer” means a Respondent’s written response to a Claim or Cross-Claim.
(c) “Arbitration” means a voluntary, private process intended to afford parties an expeditious, time-saving and cost-effective means to resolve disputes that otherwise might be litigated in the courts. Parties agree by contract or submission to be bound by the decision of the Panel. The arbitration proceeding is private and no public record of the proceeding is kept, subject only to such disclosure as may be required by a court of competent jurisdiction.
(d) “Arbitrator” means a neutral and impartial person engaged to make a determination as to the resolution of a dispute. The Arbitrator may be any individual selected to act as such by the parties. If the Arbitrator is a practicing attorney, no attorney-client privilege attaches to communications between the Arbitrator and a Party or the Party’s representative, if any. The Arbitrator does not serve as an attorney or advocate for any Party.
(e) “Award” means the decision of the Panel to whom the Parties submit their dispute. To reach an Award, the Panel hears the evidence and arguments presented by or on behalf of the Parties, following which the Panel issues a final and binding written decision known as the “Award” which resolves the Parties’ dispute.
(f) “Claim” means an allegation or request for monetary or other relief.
(g) “Claimant” means a party that initiates an Arbitration for monetary or other relief.
(h) “Counterclaim” means a Claim filed by a Respondent against the Claimant.
(i) “Cross-Claim” means a Claim filed by a Respondent against another already-named Respondent.
(j) “Panel” means the Arbitration Panel, whether it consists of one or more Arbitrators. Hereinafter, the use of the term “Panel” in these Rules is intended to mean either a single Arbitrator or a three-person Panel of Arbitrators, as the context may require. If the Panel consists of more than one Arbitrator, the decisions of a majority of the Arbitrators comprising the Panel shall constitute the decision of the Panel.
(k) “Party” (plural “Parties”) means a person, firm or entity, whether or not represented by counsel, who or which is either a claimant or respondent in the Arbitration.
(l) “Reply” means a response to a Counterclaim.
(m) “Respondent” means a Party against whom a statement of claim or third party claim has been filed. A Claimant against whom a counterclaim has been filed is not a Respondent.
(n) “Rules” means the Arbitration Rules set forth herein and are hereinafter referred to as “the Rules” or “these Rules.”
(o) Statement of Claim” means the initial or amended claim filed by the Party or Parties initiating the arbitration.
(p) Third-party Claim” means a claim by the Respondent against a Party not already named in the Statement of Claim or any other previous pleading.
Rule A-2 Consent to CAMS Arbitration Rules:
By submitting any case to Arbitration before a CAMS Panel, the Parties are deemed to have consented and agreed to these Rules for the conduct of the Arbitration Proceeding. Notwithstanding the foregoing, with the consent of the Panel, the Parties may elect to proceed with the Arbitration under the arbitration rules of such other nationally recognized alternative dispute resolution service as may be agreed upon by them. The Panel shall have sole discretion as to the rules under which the Arbitration shall be conducted.
Rule A-3 Arbitration Fees and Expenses:
All administrative and other fees established by CAMS, if any, and all Arbitrator compensation and reimbursable expenses, shall be paid by the Parties in equal shares unless agreed otherwise by them or as provided by applicable law. Notwithstanding the foregoing, the Panel shall have the discretion to apportion any and all administrative fees, Arbitrator compensation, and reimbursable expenses in other than equal shares or as otherwise agreed to by the Parties. Travel expenses of the Arbitrator(s), including but not limited to, mileage and parking costs, shall not be reimbursable if the Arbitration is conducted in Nassau County.
Rule A-4 Confidentiality:
Unless the Parties otherwise agree, the Arbitration, although private, is not confidential. The Parties may, however, enter into an agreement to make the proceeding confidential.
Rule A-5 Matters for Submission:
Except as otherwise precluded by statute, rule, regulation or other applicable law, Arbitration under these Rules may be used for any matters that are justiciable or capable of being decided by a court or in arbitration. The scope of arbitral matters, cases, disputes and claims is broad. Such matters may include, but are not limited to, matters which are (a) authorized under the Federal Arbitration Act; (b) in litigation in any court; (c) required by statute to be determined by arbitration; (d) required by agreement to be determined by, or submitted to, arbitration; or (e) voluntarily submitted to arbitration by the Parties.
Rule A-6 Request for Arbitration; Voluntary Submission:
(a) Any Party, or the parties jointly or collectively, may submit a dispute to Arbitration by filing with CAMS a demand for, or a request for or consent to, Arbitration (the “Demand”).
(b) If the Demand is not filed by all Parties, the Claimant(s) shall serve the Demand on all other Parties. The Demand shall identify the Parties and set for the nature of the dispute, the amount involved, if any, and any other remedies sought. The Demand shall be accompanied by a copy of the provision of any applicable agreement where the Arbitration is pursuant to a written agreement to arbitrate between or among the Parties. If the matter has been, or is, in litigation, a complete set of all relevant documents (e.g., pleadings, bills of particular, court orders and decisions) shall be provided by the Claimant(s).
(c) Following any submission of a Demand, the Respondent(s) shall serve an Answer within ten (10) days after service of the Demand. Failure to serve and file the Answer shall be deemed a denial of the Claim(s) in the Demand. An Answer to a Cross-Claim or a Reply to a Counterclaim shall be served and filed within (10) days after service of the Cross-Claim or Counterclaim. Failure to serve and file an Answer to a Cross-Claim or Reply to a Counterclaim shall be deemed a denial of the Cross-Claim or Counterclaim, as the case may be. Copies of the Demand, Answer and any Reply shall be filed with each Arbitrator comprising the Panel.
Rule A-7 Counterclaims, Cross-Claims and Changes in Claims:
At any time prior to the appointment of the Panel, a responding Party may serve and file a Counterclaim in the Party’s Answer or a Cross-Claim against another Party, setting forth the nature of the dispute, the amount of the Counterclaim or Cross-Claim, if any, and any other remedies sought. In addition, at any time prior to the appointment of the Panel, any Party may change the Party’s Demand, Counterclaim or Cross-Claim. After the Panel has been appointed, a Party may assert an amended Answer, Counterclaim or Cross-Claim or make a change to a Demand, Counterclaim or Cross-Claim only with the Panel’s consent, which consent shall be freely given absent demonstrated prejudice to another Party.
Rule A-8 Selection of Arbitrator(s):
(a) The Parties may agree upon the selection of an Arbitrator or Arbitrators on the CAMS roster of neutrals who shall comprise the Panel for the Arbitration. Upon reaching such agreement, the Parties shall notify CAMS of their selection by filing with CAMS a written notice containing the name(s) of the Arbitrator(s) selected to determine their dispute, as well as the names, addresses, contact phone numbers and e-mails of each of the Parties, together with a copy of the Demand and any Answers or Reply which may then have been served in the dispute. Upon receipt of such notice, CAMS shall promptly notify the Panel of the filing and provide each Panel member with copies of all documents then filed by the Parties. Where the Panel consists of more than one Arbitrator, the Parties may, by agreement, designate which, among the Arbitrator(s) shall serve as the chair of the Panel. If the Parties do not designate a Panel chair, the members of the Panel shall decide upon which of them shall be designated to serve as chair, and the Panel shall promptly notify the Parties of such designation.
(b) If, after appointment to act, an Arbitrator is unable to perform his/her duties, CAMS shall promptly notify the Parties of the vacancy, and the Parties may then select a substitute Arbitrator from the CAMS roster of neutrals or any other neutral person, whether or not a CAMS neutral, upon whom the Parties may agree. Where a vacancy occurs on a three (3) Arbitrator Panel, the Parties may stipulate that the remaining Arbitrators shall continue with the hearing and reach a determination of the dispute.
(c) Each member of the Panel shall execute an oath or affirmation to faithfully perform the duties of the office of Arbitrator and render an Award based upon the evidence presented.
Rule A-9 Discovery:
Subject to the Panel’s powers as set forth in Rule A-10, the Parties may request production of documents and other information.
Rule A-10 Panel’s Powers; Enforcement:
Without limiting any other powers conferred upon arbitrators by law,
(a) The Panel shall have the power to:
- rule on the Panel’s own jurisdiction to hear and determine the dispute;
- determine applications for the production of documents or other information;
- subpoena witnesses, books, papers, documents, and other items;
- administer oaths and affirmations;
- determine the admissibility in evidence of offers of proof;
- require the submission of briefs, including copies of cases and other authorities to be relied upon;
- determine issues of law and fact;
- determine requests for declaratory and/or injunctive relief;
- permit site inspections; and
- take such other actions as the Panel may determine to be necessary to bring the proceedings to an expeditious and appropriate conclusion.
(b) The Panel may enforce any orders issued by the Panel or any of the provisions of these Rules in order to otherwise achieve a fair, efficient and economical resolution of the case, including, without limitation:
- requiring that any exchange or production of confidential documents and/or information be treated by the Parties and their counsel as confidential;
- imposing conditions or limitations on discovery and disclosure of electronic and other documents; allocating the costs of document production, including electronically stored information; and
- issuing any other enforcement orders which the Panel is empowered to issue under applicable law.
Rule A-11 Disclosures:
(a) Any prospective or appointed Arbitrator shall promptly disclose to the Parties if s/he has any current or prior direct or indirect personal, professional or financial interests or relationships in or with the matter to be submitted to Arbitration and/or any of the Parties, their attorneys or known witnesses or prospective witnesses associated with the matter. The duty of the prospective or appointed Arbitrator to disclose hereunder shall be a continuing obligation throughout the entire arbitration process.
(b) Any Party or attorney involved in the Arbitration shall promptly disclose to CAMS and the Panel and the other Party or Parties any current or prior direct or indirect personal professional or financial relationship with a prospective or appointed Arbitrator.
(c) If any Party wishes to challenge the service of an arbitrator based upon a disclosure made as provided above, the challenge shall be submitted to CAMS’ Advisory Board for determination as to whether the Arbitrator shall continue to serve, and such determination by the Advisory Board shall be final and binding. If any challenge to an Arbitrator involves an Arbitrator who is also a member of the Advisory Board, the President of CAMS shall select another member from CAMS’ roster of neutrals to serve on the Advisory Board on an ad hoc basis for making the determination.
Rule A-12 Pre-Hearing Conference:
(a) The Panel shall fix the date and time for a pre-hearing conference which shall be conducted not less than five (5) business days, nor more than thirty (30) business days, after the Panel has accepted appointment. The pre-hearing conference may be conducted by telephonic conference call.
(b) At the pre-hearing conference, the topics to be considered may include, but shall not be limited to, (1) jurisdiction, (2) discussion of claims, counterclaims, cross-claims and issues, (3) existence of related entities and addition of other parties, (4) exchanges of information and scheduling therefor, (5) mutual exchange and provision of documentary hearing exhibits to the Panel, (6) witness lists, (7) stipulations of uncontested facts, (8) service and filing of pre-hearing briefs, (9) use of stenographic reporter, (10) form of the Award, and (11) scheduling date(s) and location for the hearing.
Rule A-13 Arbitration Hearing:
(a) The Arbitration hearing shall be held in such local at a location agreed upon by the Parties and the Panel or at such other place as shall have been designated by the Parties in their agreement to arbitrate.
(b) The Panel shall fix a hearing date and time which is not sooner than fifteen (15) days from the conclusion of the pre-hearing conference. With the consent of the Panel, the Parties may agree to another date and time for the hearing. The Panel shall give written notice to the Parties of the time and date for the hearing at least ten (10) days prior to the scheduled hearing date unless all Parties agree to a shorter time in which to give such notice.
(c) The Panel may adjourn the hearing date and other deadlines upon application of any Party for good cause shown; provided, however, that recognizing that the Panel will set aside the specified time for the conduct of the hearing, if a request is made for an adjournment or cancellation on less than three (3) business days’ notice before the scheduled hearing and granted by the Panel, the requesting Party shall pay a cancellation fee as provided in CAMS’ then applicable Schedule of Arbitration Fees.
Rule A-14 Evidence:
The Panel shall not be bound by rules of evidence unless otherwise agreed by the Parties.
Rule A-15 Stenographic Record:
(a) Any Party may make arrangements for a stenographic record of the hearing. The requesting Party shall make arrangements directly with a certified stenographer and shall notify all other Parties and the Panel of the arrangements not less than ten (10) calendar days prior to the hearing, unless the Panel directs a different time period for the giving of such notice. The requesting Party or Parties shall pay the cost of the record, subject, however, to the provisions of Rule A-23(b).
(b) No other means of recording the proceedings will be permitted absent the agreement of the Parties and the Panel.
(c) If the transcript or other recording is agreed by or among the Parties, or designated by the Panel, to be the official record of the proceeding, an electronic or hard copy, as may be requested by the Panel, must be provided to the Panel and made available to the other Parties for inspection as determined by the Panel.
Rule A-16 Closing the Hearing; Issuance of Award:
(a) The chair of the Panel (or the Arbitrator if the Panel is comprised of one) shall declare when the hearing is closed. The Panel shall execute an Award within thirty (30) days after the hearing has been declared closed. Where the Panel consists of more than one (1) Arbitrator, a majority of the Panel shall be required to make an Award. The Parties may consent in writing to a longer period in which the Panel may execute the Award.
(b) At any time before an Award is issued, the hearing may be reconvened by the Panel on the Panel’s own motion, or upon the application of a Party for good cause shown, and the decision of the Panel with regard thereto shall be final.
(c) The Award of the Panel shall be final and binding and may be confirmed by a court as provided by law. The Award shall be signed by each Arbitrator comprising the Panel and may, where appropriate, contain a dissent. The Award may include a provision awarding costs, Arbitrator’s(s’) fees and/or expenses to a Party or Parties, as permitted under these Rules or pursuant to the Parties’ agreement. The Parties, and not the Panel or CAMS, shall be responsible for enforcing the Award. The Panel shall transmit copies of the Award to the Parties within thirty-five (35) days after the close of the hearing, or such later time if the Parties have consented to an extension of time in which the Panel may execute and transmit the Award.
Rule A-17 Default:
Upon default of a Party in appearing at the hearing, evidence shall be taken and an Award shall be issued as may be deemed by the Panel to be appropriate. Should all Parties fail to appear at the hearing, the Panel may issue an award dismissing the matter, without prejudice.
Rule A-18 Parties’ Obligations:
All Parties shall cooperate with the Panel and with each other. The Parties are prohibited from having ex parte communications with the Panel.
Rule A-19 Settlement:
If the Parties settle or compromise all or any part of their dispute during the course of the Arbitration, the Panel may, at the request of the Parties, set for the terms of such settlement or compromise in a Consent Award signed by the Parties and the Panel. The Parties shall promptly advise the Panel of any settlement and remain responsible for the payment of Arbitrator compensation for all services rendered by the Panel prior to the Panel’s receipt of the notice of settlement; provided, however, that any additional services rendered by the Panel at the request of the Parties shall entitle the Panel to compensation for the same.
Rule A-20 Mediation:
(a) Whenever the Parties to a dispute desire to engage in “Mediation,” as distinguished from “Arbitration,’ they may do so by selecting a Mediator who will conduct the Mediation pursuant to the CAMS Mediation Rules or such other rules as may be agreed upon by the Parties.
(b) If he Parties desire to engage in Mediation, the Arbitration hearing, with the consent of the Panel, may be suspending pending the Mediation. The Parties may, by unanimous written consent and the consent of an Arbitrator comprising the Panel or a member of the Panel, elect to serve as the Mediator.
(c) One who serves as a “Mediator” shall not thereafter serve as an “Arbitrator” in a subsequent or further Arbitration proceeding involving the same Parties and some or all of the same issue(s), unless the Parties thereto request that s/he do so, and they sign a written waiver of any objections thereto, which shall be filed with the Panel prior to the commencement of any subsequent or further hearings.
Rule A-21 Suspension/Termination of Proceedings:
(a) At the option of the Panel, the Parties may be required to deposit with the Panel advances of Arbitrator compensation anticipated by the Panel to conduct the proceedings. At the conclusion of the Arbitration, any portion of the advance Arbitrator compensation so deposited which is not used in the proceedings shall be promptly returned to the Parties in proportion to the deposits made by them. If full payments of Arbitrator compensation have not been made, the Panel may suspend the Arbitration. A Party may elect to avoid suspension of the Arbitration by advancing the unpaid portion of the Arbitrator compensation. If a non-paying Party has asserted a claim, counter-claim, or cross-claim, the non-paying Party shall not be entitled to an Award upon such claim, counterclaim or cross-claim; provided, however, that evidence on the claim, counterclaims or cross-claim shall nevertheless be permitted, but only to the extent that it is entertained for the purpose of establishing a defense to such claim, counterclaim or cross-claim.
(b) If the Arbitration has been suspended by the Panel and the Parties have failed to make the full deposits requested within the time designated by the Panel, which shall not be less than fifteen (15) calendar days after the Arbitration has been suspended, the Panel may terminate the proceedings without prejudice.
Rule A-22 Panel’s Authority to Allocate Legal Fees and Expenses:
If a statute directs or permits the shifting of attorney’s fees and costs, or if the Parties’ agreement to arbitrate contains a provision allowing the Panel to allocate or assess legal fees and expenses, or all of the Parties request legal fees and expenses incurred in the Arbitration as a measure of damages, the Panel shall be authorized to award such fees and expenses.
Rule A-23 Costs/Fees:
(a) At the time the Demand commencing the Arbitration is submitted, the submitting Party or Parties shall pay a deposit toward the Arbitrator’s(s’) compensation and reimbursable expenses (the “Arbitrator Deposit”) as the Panel may reasonably request, except as otherwise provided below in subparagraph (b) of this Rule A-23.
(b) All charges, compensation and expenses of the Arbitration shall be borne equally by the Parties or as they otherwise agree or as provided by applicable law or as directed by the Panel. The rate for each Arbitrator comprising the Panel shall be the rate provided for in CAMS’ Schedule of Arbitration Fees as in effect at the time of filing the Demand for Arbitration, which rate shall apply to all time spent on the matter by each Arbitrator including, but not limited to, pre-Arbitration conferences, hearings, study time, communications with Parties and/or counsel, review of motions and writing of an Award. At the conclusion of the proceeding, unearned Arbitrator Deposits shall be refunded to the Party or Parties.
Rule A-24 Non-Liability:
Neither CAMS nor any CAMS Arbitrator shall be liable to any party or Parties to the Arbitration for any act, omission or conduct in connection with the Arbitration.
Rule A-25 Immunity:
An Arbitrator, CAMS, and all persons associated with CAMS shall be immune from suit or other legal process, and none shall be made a party or witness in any arbitration or judicial proceeding arising from, or related to, the dispute submitted to Arbitration under these Rules. The Parties shall be deemed to have agreed that none of the foregoing persons is competent to testify as a witness in any action, suit or proceeding.
Rule A-26 Waiver:
(a) Any Party or attorney who proceeds with the Arbitration with actual or constructive knowledge that any provision or requirement of these Rules has not been complied with, and who fails to promptly file an objection in writing with the Panel, shall be deemed to have waived the right to object.
(b) In requesting Arbitration, the Parties agree and acknowledge that the Arbitrator shall not be made a party or witness in any subsequent arbitration, mediation or judicial proceeding arising from, or related to, the dispute submitted for arbitration.
Rule A-27 Additional Time for Mailing:
Where any paper, document or notice required or permitted to be served or filed hereunder has been transmitted by mail, an additional three (3) days shall be added to the time period in which to respond.
Rule A-28 Communication with the Panel:
Communications between or among any Party or Parties and the Panel via e-mail are preferred and encouraged, although not required; provided, however, that communications via e-mail exceeding twenty-five (25) pages shall, in each case require an additional transmission to each Arbitrator on the Panel of a hard copy of the entire communication. There shall be no ex parte communications with the Panel.
Rule A-29 Corrections to Award:
Within thirty (30) days after the transmittal of the Award, upon application of a Party, or sua sponte, the Panel may correct any computational, typographical or clerical errors in the Award. Corrections may only be made to matters which are ministerial, and no changes or amendments may be made on the merits of the case.
Rule A-30 Headings:
The headings used in these Rules are made for convenience and are used for general reference purposes only and shall not be construed to describe, define or limit the scope of, or otherwise affect, the interpretation or meaning of these Rules or any of their provisions.
(Revised December, 2017)