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

46 THE JOURNAL OF AMERICAN ARBITRATION [Vol. 5:1
The site of ad-hoc arbitration will most often be the arbitrator’s office,
the office of one of the parties, or a rented conference room. 184
Given the nature of the arbitration process, additional factors should
be taken into consideration in determining the most convenient location
for an arbitration, including neutrality, formality, and cost. Because the
parties may choose any convenient place, neutrality of the situs of the
arbitration can be at issue. Some advocates prefer that the hearing
always be held in a neutral place. To other advocates, neutrality of place
is not important, as long as the location is convenient to all parties. Cost
is an important consideration, keeping in mind that the purpose of
arbitration is to reduce the time and cost spent on resolving the
dispute. 185 To reduce time and travel expenses, parties can choose a
forum that is close to the parties. If the parties rent a conference room in
a hotel, they will split the cost of the room unless the contract specifies
something different. Formality can be an issue. The environment should
be conducive to a dignified arbitration hearing; there is a danger if the
place is too informal. For example, “arbitrations held in hotel rooms,
offices, union halls, or other places associated with non-judicial business
can increase the likelihood that the proceeding will degenerate from a
true hearing into a free form meeting.” 186
Generally, parties to a dispute are responsible for deciding on a
location that is acceptable to both parties. As an alternative, parties may
choose to have the arbitration administered by an agency, such as the
AAA; in which case, a Case Manager will be assigned to the arbitration
proceedings and will talk with the parties and reach a decision as to the
location, time, and date of the arbitration hearing. 187 Factors the AAA
184. Glen Spencer, Administered vs. Non-administered Arbitration, 54 DISP.
RESOL. J. 42, 46 (Feb. 1999). In ad-hoc arbitration:
[T]he arbitrator’s offices are most commonly used. Sometimes, hotel
conference rooms are rented for the hearing when no other option exists.
From time to time, parties complain that the arbitrator conducts too much
other business during the hearing day, thus delaying the proceedings. The
likelihood of this happening is highest if the arbitrator is hosting the
hearing at his or her office.
Id.
185. Edward A. Purcell, Jr., Geography as a Litigation Weapon: Consumers,
Forum-Selection Clauses, and the Rehnquist Court, 40 UCLA L. REV. 423, 445-49
(1992).
186. Hart & Wolf, supra note 107, at 1441.
187. Michael D. Young, Endispute Rules and Procedures, in LITIGATION 1993,
at 241, 245 (PLI Litig. & Admin. Practice, Course Handbook Series No. H4-5177,