Arbitration
Our firm has substantial experience in arbitration, including the recent defense of a contractor client in a major dispute with a very large international steel company. To provide some insight into this case, the claims alleged against our client were in excess of $7 million, allegedly arising because of delays caused to the project and damages which were incurred. Through the contract, both parties were required to arbitrate. The case required substantial discovery and our side was forced to file and argue numerous motions to compel the steel company to product records they had failed to turn over and to which our client was entitled. The arbitration hearings which took three weeks, with various witnesses and experts were called to testify. Thousands of documents were introduced into evidence in the process. In the end our client prevailed, completely defeating their claims and recovering the balance of the retainage due, changes and interest which had accrued.
If your contract requires arbitration, a dispute arises and you seek our counsel, WLG will offer you the best possible advice on preparing and participating in the arbitration process. We will also seek alternatives to proceeding with the hearings by the parties going to mediation or through negotiations on your behalf. You vested interests are our first priority. You may be assured that we will zealously represent you and your company.
Our Availability for An Inquiry Regarding Arbitrating Your Case
Mr. Walstad has served as an arbitrator of various disputes. He is first and foremost a trial lawyer, but with his background and experience, he is very comfortable sitting as an arbitrator or on a panel and giving the fairest decision he can for the benefit of the parties.
If your case needs an arbitrator, and you and your counsel believe that Mr. Walstad is a suitable candidate, we welcome your inquiry.
The Need for Experience With Arbitration
Having an experienced legal team thoroughly familiar with the arbitration process is very important. Arbitration is not the same as litigation. Access to the courts for the resolution of disputes is a right guaranteed by the U.S. Constitution and the constitutions of the various states. In the case of litigation, the attorneys and conduct of the case are subject to the rules governing procedures in the courts of a particular state and the court precedents which are binding.
Arbitration arises from an agreement between the parties. Once parties agrees to arbitration, they are bound under the laws of the states and under the Federal Arbitration Act. There are exceptions, and sometimes the language regarding arbitration is not clear and may not even be mandatory. You should consult with counsel experienced with such clauses regarding whether, in your particular case and under the language of your contract, you will be bound to arbitration.
Experienced counsel can be of real benefit to your company and may save you countless expense, if you are faced with the prospect of arbitration of a dispute.
The Arbitration Process
In some contracts the language relating to arbitration is clear, and you should assume you are bound to arbitrate. The contract may refer to specific rules, such as the Construction Industry Rules of the American Arbitration Association or the rules set forth under a specific state statute may be specified. Nevertheless, an arbitration proceeding, and the application of particular rules and precedents is subject, in most cases, to the discretion of the Arbitrator. Some contracts require more than one arbitrator, while others specify only one is to be selected. You need experienced counsel to advise you regarding whether one or more arbitrators are in your interests, and how long the arbitration proceedings may take and what the cost may be.
There is an argument for arbitration that may take less time and the dispute will be resolved in a shorter time frame than the litigation process. There will be cases where this is true. However, the actuality of arbitration today is that the process and arbitration proceedings may take substantially longer than one might think.
In the selection process of an arbitrator(s), it is important to determine whether the potential arbitrator and counsel for the parties have schedule availability that coincides so that the arbitration is not extended needlessly because of schedule conflicts. Extension of the proceedings leads to more and more expense for everyone.
Thus the selection process of the actual arbitrator(s) is of vital importance. And once selected, your counsel will have the task of moving the case along and pursuing a quick hearing date or not, depending upon his or her assessment of the case, the need for discovery and many other considerations.
Once the hearings are completed, some arbitrators take weeks or months to render their decision. And in most cases, they are urged by various associations who are tasked with arbitration, to render a decision without giving a reasoned decision setting forth not only their conclusions, but findings regarding the facts and application of laws or precedents that they conclude may be binding upon them in deciding the case. A "reasoned decision" can be requested, however, and many arbitrators will accommodate such a request if made early in the proceeding.
You should assume that while state and federal law may allow for an appeal process after an arbitration decision, it is most likely not going to result in an overturning of the decision. The courts are reluctant to overturn the decision of an arbitrator except for the specific reasons set forth in the applicable statutes, and those reasons are very narrow and limited.
We hope the foregoing provides the reader with a basic understanding as to why numerous trial lawyers are convinced arbitration is not often in the interests of their clients. Yet, if there is a binding agreement, arbitration is the remedy.
In the Walstad Law Group, we believe arbitration is an excellent method for resolving disputes in most cases. There are many challenges, some of which we have discussed, but with the selection of the right arbitrator(s) and a prudent use of applicable procedures, arbitration is not to be feared. Rather, your company may find that it works to your advantage.