No Pay No Play: How to Solve the Non-Paying Party Problem in Arbitration - Chapter 28 - AAA Handbook on Arbitration Practice

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AAA Handbook on Arbitration Practice - Hardcover

AAA Handbook on Arbitration Practice - Electronic

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I.  Introduction

A continuing complaint of parties who put arbitration clauses in their commercial agreements is that they are not realizing the benefits of arbitration due to the nonpaying party problem. The problem arises when one party fails to pay its share of the required deposit for arbitrator compensation and administrative arbitration fees. This chapter discusses the practical implications and legal issues resulting from this problem and proposes a solution that should preclude parties from using nonpayment of deposits strategically as a means of "gaming" the arbitration process.
 

Full Table of Contents from "AAA Handbook on Arbitration Practice"

PART I: Issues in Arbitration Practice and Procedure

 

1.   Where Should You Litigate Your Business Dispute?  In an Arbitration? Or through the Courts?

      John H. Henn

   

2.   Keeping Arbitration Easy, Efficient, Economical and User Friendly

      Louis L. C. Chang

 

3.   Thirty Steps to a Better Arbitration

      Judith B. Ittig and Michael J. Bayard

 

4.   An Arbitrator's Wish List

      Stanley Weinstein

   

5.   Is Creeping Legalism Infecting Arbitration?

      Gerald F. Phillips

 

PART II: Arbitrator Selection and Conduct

 

6.   Selecting the Ideal Arbitrator

      Charles J. Moxley

 

7.   Why Not Provide for Neutral Party-Appointed Arbitrators?

      Robert D. Taichert

   

8.   Chairing an Arbitration

      Judith B. Ittig and Michael J. Bayard

 

9.   May Arbitrators Suggest Mediation? An Informal Survey

      Gerald F. Phillips

 

10. Calling All Arbitrators: Reclaim Control of the Arbitration Process-the Courts Let You

      David E. Robbins

   

PART III: Arbitration Procedure

 

11. Consolidation, Joinder and Class Actions  What Arbitrators and Courts May and May Not Do

      Richard Jeydel

   

 

12. Arbitration and Class Actions after Bazzle

      Samuel Estreicher and Michael J. Puma

   

13. An Update on Multijurisdictional Practice and ADR

      Bruce E. Meyerson

 

14. The Limits on Enforcement of Arbitral Third-Party Subpoenas  Should They Be Loosened?

      Timothy C. Krsul

   

15. The Use of Dispositive Motions in Arbitration

      Alfred G. Ferris and W. Lee Biddle

   

PART IV: Discovery and Evidence in Arbitration

 

16. Early Discussion of the Evidence:Why the Arbitration Panel Should Not Wait Until All the Evidence Is In

      Terrill D. Albright

   

17. Organizing Documents for Arbitration

      Leslie Trager

   

18. Electronic Discovery In Arbitration: Privilege Issues and Spoliation of Evidence

      Irene C. Warshauer

   

19. The Use of Subpoenas in Arbitration

      Leslie Trager

 

20. Using Experts in Arbitration

      George Ruttinger and Joe Meadows

   

21. The Power of Arbitrators to Award Monetary Sanctions for Discovery Abuse

      Philip D. O'Neill

   

PART V: Ethics in Arbitration Practice

 

22. Revised Code of Ethics for Commercial Arbitrators Explained

      Bruce Meyerson and John M. Townsend

   

23. Arbitrators Must Investigate or Disclose, Second Circuit Says: Court Opens Door to Evident Partiality Attacks

      Bethany L. Appleby

 

24. Delaying Tactics in Arbitration

      Alain Frécon

   

 

25. Who Is Responsible for Ethical Behavior Counsel in Arbitration?

      Steven C. Bennett

 

26. An Arbitrator's Authority to Award Attorney Fees for Bad-Faith Arbitration

      John W. Hinchey and Thomas V. Burch

 

PART VI: Damages and Review and Enforcement of Arbitration Awards

 

27. The Punitive Damages Remedy: Lessons for Drafters of Arbitration Agreements

      Michael D. Nolan and Andrew M. Leblanc

   

28. No Pay No Play: How to Solve the Non-Paying Party Problem in Arbitration

      Richard DeWitt and Rick DeWitt

 

29. Expanding Judicial Review of Arbitration Awards: The Uncertainty Continues for Drafters of Arbitration Agreements

      Cedric C. Chao and James M. Schurz

 

30. Appeals of Arbitration Awards Agreement: Why They Should Be Allowed!

      Richard C. Solomon

   

31. A Practical Approach to Affording Review of Commercial Arbitration Awards:
Using an Appellate Arbitrator

      Paul Bennett Marrow

   

32. Judicial Remands of Challenged Awards: Legal and Procedural Issues after Hall Street

      Stuart M. Widman and Donald Lee Rome

 

Richard J. DeWitt is a principal at DeWitt Law/ Resolve Disputes in Coral Gables, Florida. He has over 25 years’ experience as a business and technology attorney and business executive. Mr.DeWitt serves as an arbitrator and mediator in domestic and international commercial, business, technology and employment disputes. He is a member of the American Arbitration Association's National Roster of Neutrals serving on its large, complex case panel, its commercial, employment and technology panels and its panel of Mediators. He is also a Member of the FINRA Dispute Resolution Board of Arbitrators and serves on the National Arbitration Forum's Panel of Neutrals and the CDRS Panel of Neutrals. He is a Florida Supreme Court Certificated Arbitrator and Florida Supreme Court Certified Circuit Civil Court Mediator. Mr. DeWitt is a member of the Florida Bar, a Fellow of the College of Commercial Arbitrators and Distinguished Fellow of International Academy of Mediators. 

Richard J. Dewitt, III is an attorney at Brigham Moore, LLP, in West Palm Beach, Florida.  He practices exclusively in the areas of eminent domain, inverse condemnation, and property rights litigation, protecting the rights of property owners against governmental entities.  He is a member of the Florida Bar.