2006/Vol. 5 No.1 - Hamline Law - Hamline University

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24 THE JOURNAL OF AMERICAN ARBITRATION [<strong>Vol</strong>. 5:1 arbitration will be conducted. 100 The key problem with ad hoc arbitration is it lacks institutional oversight. Despite having a clear arbitration clause in the contract, if one side is recalcitrant and refuses to pick an arbitrator, it is difficult to force the party into the ad hoc arbitration. Furthermore, the parties lack the power that an arbitrator has to move the proceeding along. 101 For these reasons, and unless both parties and their attorneys have considerable experience with arbitration, it is best to utilize the services of an agency. 102 As mentioned previously, some of the well known arbitration providers are the American Arbitration Association (AAA), 103 the International Chamber of Commerce (ICC), 104 and the United States Federal Mediation and Conciliation Service (FMCS). 105 Many state agencies also provide 100. See Arnold, supra note 96, at 108. In an ad hoc proceeding if “one party is recalcitrant and wants to obstruct the arbitration . . . the party desiring the arbitration must go to court to compel initiation of the arbitration.” Id. See also Hoenig, supra note 85, at 60. Any “dispute among the parties as to the appropriate venue for the arbitration would delay appointment of an arbitrator and most likely require a trip to court.” Id. at 62. If the parties cannot agree on an arbitrator or did not specify a method to decide on an arbitrator, “the usual result is that the court will appoint an arbitrator.” Id. at 60. 101. Rasmussen, supra note 86, at 1834; see, e.g., American Arbitration Association, The Code of Ethics for Arbitrators in Commercial Disputes, Canon 1(F) (March 1, 2004), http://www.adr.org/sp.asp?id=21958 (last visited Dec. 5, 2005) [hereinafter AAA Code of Ethics]. The AAA Code of Ethics provides that “[a]n arbitrator should conduct the arbitration process so as to advance the fair and efficient resolution of the matters submitted for decision. An arbitrator should make all reasonable efforts to prevent delaying tactics, harassment of parties or other participants, or other abuse or disruption of the arbitration process.” Id. 102. Carbonneau, supra note 99, at 1207. 103. See American Arbitration Association, A Brief Overview of the American Arbitration Association, at http://www.adr.org/Overview (last visited Dec. 5, 2005). In 2002, the AAA administered 230,255 cases, which were resolved through mediation, arbitration, or less formal methods of dispute resolution. Id. 104. See International Chamber of Commerce, Facts and Figures on ICC Arbitration in 2003, at http://www.iccwbo.org/court/english/right_topics/stat_2003. asp (last visited Dec. 5, 2005). Five-hundred eighty requests for arbitration were filed with the International Court of Arbitration. Id. Of these requests, the ICC rendered awards in 369 cases. Id. 105. See Federal Mediation and Conciliation Service, Arbitration Statistics Fiscal Year 2004, at http://fmcs.gov/assets/files/Arbitration/CLOSEDCASESFOR0 4.doc (last visited Dec. 5, 2005). In 2004, the number of panel requests received by the FMCS exceeded 18,000. Id. In the same year, the agency closed 2,485 of those requests. Id. This number is remarkable compared to the 260 cases that were closed by the agency only two years prior. Id.
<strong>2006</strong>] ARBITRATION: THE BASICS 25 arbitration services. 106 106. State of Minnesota Bureau of Mediation Services, About the Bureau of Mediation Services, at http://www.bms.state.mn.us (last visited Oct. 26, 2005). The State of Minnesota passed the Minnesota Labor Relations Act (MLRA) in 1939 to facilitate the settlement of labor-related disputes. Id. As part of the MLRA, the BMS was created to perform functions, including arbitration and mediation. Id. Many other state and local agencies exist for the application of ADR services including the following (links to these organizations are available on the website of the Association of Labor Relations Agencies (ALRA), at http://www.alra.org/lablin ks.htm (last visited Oct. 19, 2005)): Alaska Labor Relations Agency Arkansas Department of Labor, Mediation and Conciliation Division California Agricultural Labor Relations Board California Public Employment Relations Board California State Mediation and Conciliation Service Connecticut State Board of Labor Relations Connecticut State Board of Mediation & Arbitration Delaware Public Employment Relations Board District of Columbia Public Employee Relations Board Florida Employees Relations Commission Hawaii Labor Relations Board Illinois Educational Labor Relations Board Illinois Labor Relations Board Indiana Education Employment Relations Board Los Angeles City Employee Relations Board Los Angeles County Employee Relations Commission Maine Labor Relations Board Maryland Higher Education Labor Relations Board Massachusetts Board of Conciliation and Arbitration Massachusetts Joint Labor-Management Committee for Municipal Police and Fire Michigan Department of Civil Service Michigan Employment Relations Commission Minnesota Bureau of Mediation Services Missouri State Board of Mediation Montana Board of Personnel Appeals Montana Labor Standards Bureau, Collective Bargaining Unit Nebraska Commission of Industrial Relations Nevada Local Government Employee-Management Relations Board New Hampshire Public Employee Labor Relations Board New Jersey Public Employment Relations Commission New Mexico Public Employee Labor Relations Board New York City Office of Collective Bargaining New York State Employment Relations Board New York State Public Employment Relations Board North Carolina Employment Mediation Bureau Ohio State Employment Relations Board Oklahoma Public Employees Relations Board Oregon Employment Relations Board Pennsylvania Bureau of Mediation Pennsylvania Labor Relations Board
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2006/Vol. 5 No.1 - Hamline Law - Hamline University

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