Events & Announcements

    Section of Litigation, Alternative Dispute Resolution

    Upcoming ABA Events

    New Prague Rules on Efficient Conduct of Proceedings in International Arbitration

    On December 14, 2018, the Rules on the Efficient Conduct of Proceedings in International Arbitration, also known as the Prague Rules, are scheduled to be released. These proposed rules on the taking of evidence in arbitration adopt a more inquisitorial approach. The hope is that the new rules will help reduce the duration and cost of arbitrations. Parties and Arbitral Tribunals may decide to apply the Rules as a binding document or as guidelines to all or any part of the proceedings. These rules came about because of dissatisfaction with the time and costs involved in document production and the direct and cross-examination of witnesses.

    Read the Prague Rules

    FINRA Releases June 2019 Statistics

    The Federal Industry Regulatory Authority has just released statistics about its past and present case load. At the midpoint of the year, FINRA reports having 1,799 new cases which is 21 percent lower than at this time in 2018. The top three causes of action in Customer Arbitration were breach of fiduciary duty (981 cases), negligence (884 cases), and failure to supervise (818 cases). Cases decided by arbitrators continued to decline with 17 percent of the cases decided by arbitrators and 83 percent decided by other means—mostly by direct settlement by the parties. For more information, please visit the FINRA website.

    SEC Approves Rule Amendment

    On May 30, 2019, the Securities and Exchange Commission approved a rule amendment to expand time for non-parties to respond to arbitration subpoenas and orders of appearance of witnesses or production of documents. Rules 12512 (d) and (e) and 12513 (d) and (e) will extend the response time for non-parties to object to an order or subpoena from 10 calendar days of service to 15 calendar days of receipt of the order or subpoena. The amendments exclude first-class mail as an option to serve documents on the non-party and as an option for the non-party to file the objection to the scope or propriety of the order or subpoena. The rule became effective on July 1, 2019 for cases filed on or after that date. For more information please visit the FINRA page.

    The New Singapore Convention on Mediation

    Tim Schnabel, a former attorney with the United States Department of State, has written an article concerning the new UNCITRAL convention on mediated settlement agreements (to be called the Singapore Convention). Tim Schnabel was primarily responsible for negotiating the convention on behalf of the United States. The article is available for free on SSRN and is entitled "The Singapore Convention on Mediation: A Framework for the Cross-Border Recognition and Enforcement of Mediated Settlements."

    Women in Dispute Resolution 2016–2017 Directory

    The mission of the Women in Dispute Resolution (WIDR), a committee of the American Bar Association's Dispute Resolution Section, is to educate about the lack of diversity among neutrals in alternative dispute resolution settings (arbitrations and mediations) and to increase the number of diverse neutrals. WIDR is pleased to announce that the 2016-2017 Directory is now available! The WIDR Directory provides contact information along with each member's expertise and experience. WIDR is open to all members of the ABA Dispute Resolution Section and the directory reflects representation of both men and women. Please use this directory and forward it to your clients, partners, colleagues, law school classmates, and fellow ABA members, as well as contacts you may have in your community. Our goal is to get this directory into the hands of as many people as possible who have a say in hiring neutrals. A complete listing of all WIDR members, including those not in the directory, can be found on the Dispute Resolution Section membership page.

    FINRA Requests Comment on Arbitration Proposals

    The Financial Industry Regulatory Authority (FINRA) is requesting comment on proposed amendments to its Membership Application Program (MAP) rules to create further incentives for the timely payment of arbitration awards by preventing an individual from switching firms, or a firm from using asset transfers or similar transactions, to avoid payment of arbitration awards while staying in business. Deadline to submit comments is April 9, 2018. For more information please visit the FINRA page.

    New CPR Revised 2019 Administered Arbitration Rules

    In April 2019, the CPR launched revisions to their Administered Arbitration Rules. Some of the key features include adoption of CPR’s Screen Selection Process as the default mechanism for Arbitrator selection, the inclusion of a new “Young Lawyer” Rule, and the express procedural guidance on early disposition. The CPR’s Rules for Administered Arbitration were developed by CPR to provide procedures to facilitate the conduct of arbitration fairly, expeditiously, and economically.

    SEC Approves Rule Amendment

    On December 10, 2018, the Securities and Exchange Commission approved a rule amendment to establish $200 Honorarium for Contested Subpoenas or Orders. FINRA has amended Rules 122214 (c) and 13214 (c) of the Codes to provide that FINRA will pay each arbitrator an honorarium of $200 to decide, without a hearing session: (i) a discovery-related motion; (ii) a motion that contains one or more contested subpoena requests or contested orders for production or appearance; or (iii) a motion that contains one or more contested subpoena requests and contested orders for production or appearance. The amendments are effective for cases filed on or after January 7, 2019. For more information please visit the FINRA page.

    SEC Approves Rule Amendment

    On May 17, 2018, the Securities and Exchange Commission approved a rule amendment to create a less formal method for adjudicating small claims. The proposal amends Rules 12600 and 12800 (Customer Codes) and Rules 13600 and 13800 (Industry Code) to provide parties who have claims of $50,000 or less the opportunity to argue their cases before a single arbitrator in a shorter, limited telephonic hearing format. The rule will become effective on September 17, 2018 for cases filed on or after that date. For more information please visit the FINRA page.

    EU Passes the Mediation Act of 2017

    On October 2, 2017, the European Union passed the Mediation Act of 2017. Section 14 of that act requires that, before commencing legal proceedings, solicitors advise clients to consider mediation as a means of resolving their dispute and provide clients with information on mediation services. Solicitors must make a statutory declaration evidencing that their obligations under Section 14 have been properly fulfilled. This declaration must accompany the document (e.g., summons) that starts the legal proceeding.