AAA Handbook on Arbitration Practice - Hardcover
AAA Handbook on Arbitration Practice - Electronic
Preview Page from Chapter 11
Advocates and arbitrators must all, from time to time, confront the old and as yet unresolved issues of consolidation of cases and joinder of parties. These related procedures, so well defined and regulated in state and federal courts, continue to cause confusion and delay in a forum otherwise designed for ease of use and expedition. The problem resides in the fundamentally contractual nature of arbitration. If the parties to a dispute are not all signatories to the same arbitration agreement, absent their collective consent, there is no universal rule of "arbitral economy" that permits arbitrators, arbitration providers, or courts to order consolidation or joinder in the arbitration context.
II. Federal and State Law
There is no federal statute authorizing an arbitrator or a court to consolidate related arbitrations or to join a third party in an arbitration proceeding. The Federal Arbitration Act makes no mention of these procedures. The FAA, however, requires arbitration agreements to be enforced in accordance with their terms.
Richard Jeydel was a senior vice president, general counsel and corporate secretary at Kanematsu USA Inc. An arbitrator and mediator, he served on the Board of Directors of the American Arbitration Association and on the AAA Roster of Neutrals. He was also a member of the Court of Arbitration for Sport in Lausanne, Switzerland, and was one of the founders of the first Inn of Court devoted to ADR.