What is JAMS Streamlined Arbitration?
The JAMS Streamlined Arbitration Rules are designed with a specific purpose in mind. They address parties who desire an efficient arbitration process that maintains procedural integrity and fairness. These rules apply to claims of $250,000 or less, excluding counsels’ fees, punitive damages, and interest. With JAMS Streamlined Arbitration Rules, parties can avoid the lengthy and costly process that can accompany a standard arbitration process.
Parties can save significant costs with these streamlined rules, making them a good fit for those wanting a low-cost arbitration process. Instead of the traditional arbitrator discovery conferences and pre-hearing hearings, arbitration under these rules is intended to be more informal. The entire procedure is as relaxed and simple as the parties agree to make it. This includes the lack of a formal discovery phase . While there is still an opportunity to conduct limited discovery before the arbitration, the entire process is meant to provide a quicker roadmap to a final decision.
Both parties in a JAMS Streamlined Arbitration are required to stipulate to the following:
With such utilization by both sides, these rules rock for their simplicity and efficiency. Adding to the schemata, both parties may have different reasons for agreeing to JAMS Streamlined Arbitration. For example, the defendant, if a bigco, may want to limit the exposure and avoid publicity from a drawn-out dispute under traditional arbitration rules. Whereas the claimant, if a small company, may want to access a more sophisticated arbitrator with expertise in the underlying subject matter. Just as there are two sides to every story, both sides may have different stories as to why JAMS Streamlined Arbitration makes sense for them.
When To Use Streamlined Arbitration
The JAMS Streamlined Arbitration Rules were created in 2015 to provide a quicker method to resolve issues. While standard arbitration procedures can last anywhere from 3 to 12 months, streamlining the calendar means that this process can be accomplished in as little as three weeks. Generally, the average arbitration process is often seen as more complicated, and attorneys draw out the timelines, by requesting hearings and scheduling continuous meetings. Specifically, arbitrators may ask for an exchange of documents to happen at least 30 days prior to the hearing; however, the JAMS Streamlined Rules have a more established timeline for parties to present their documents. The expedited process allows for important information to be exchanged between the two parties, and extends the timeline of the final hearing to a location where all of the parties can meet and discuss the situation. Given these built-in deadlines, parties who are arbitration bound through the JAMS Streamlined Arbitration Rules will have a more timely resolution, unless otherwise agreed upon. The rules require matters to be resolved approximately 45 days after the initial filing, if there are no complex issues that may require further investigation and written briefs. Since parties usually want the matter to be resolved in a timely manner, without legal obstacles, the end date of the hearing will likely work for all involved. Defense against arbitration can be extremely costly, which is why the JAMS Streamlined Arbitration Rules also have a fixed-cost structure that is not based on the amount the plaintiff is possibly suing for. Additionally, arbitration also spares the parties from the high cost of hiring plaintiffs and defense attorneys to argue their case; this means that no expert testimony will need to be found.
Key Elements of JAMS Streamlined Rules
The JAMS Streamlined Arbitration Rules are intended to be utilized in less complex cases where parties do not require a detailed and invasive discovery process. For example, these rules are a good fit for simple tort or fraud cases, or for breach of contract cases with relatively small amounts in controversy.
Some particular examples are personal-injury cases of all types – slipping-and-falling cases, motor vehicle accident cases, defamation cases, etc. As well, the Streamlined Rules can be used in family law matters, such as dissolution/child custody actions or prenuptial disputes. They can also be used in small business disputes, probate and trust cases, employment matters, certain consumer and product liability cases, and for essentially any other type of dispute where the parties do not need to go through a full discovery process.
When To Use JAMS Streamlined Arbitration Rules
The process of initiating a streamlined arbitration may vary slightly depending on the particular panel chair selected by the parties and/or JAMS; however, the overall steps are substantially similar. For the most part, the process is as follows: First, a Request, along with the requisite filing fee, is filed with the JAMS regional office in which the arbitration is to be heard. While the rules suggest that the Request must be signed by all of the parties (or attorneys for defendants), the rules also note that the signature requirement may be waived. In any event, the Request should contain basic information including the names of the parties, a recitation of the provision in the parties’ agreement calling for arbitration, the relief sought (including a damages amount), the names and relevant information concerning the parties’ attorneys, the number, if any, of witnesses expected to appear, whether the parties’ prefer an expedited hearing schedule, and any other information relevant to the arbitration. The Request can be filed by mail, email or even fax. The filing fee, which varies among the different regional offices, must also be filed at that time. Second, after a file is opened, the claimant must serve a copy of the Request on all other parties by mail, or in such manner as the parties agree upon, and send a similar service copy to JAMS. Along with the Serving of the claim, the claimant must also file the appropriate "Notice of Hearing, which sets forth the arbitration number assigned by the JAMS office and the date (as determined by the JAMS office) for the initial hearing. , The Notice of Hearing is served on all parties and sent to the JAMS office along with any responses. Once a panel chair is selected by or assigned to the arbitration, that individual will review the Request and the notice of Hearing and take the lead in drafting an inter-partes case management schedule that will set forth the deadlines for the exchange of certain preliminary disclosers, Respondent must file its Response to the Request, any affirmative defenses, motions to dismiss and/or counterclaims, any anticipated motions along with a completed case management statement. Claimant must then file its Response to the same, as well as any anticipated motions and its own case management statement. The panel chair will then send out a formal scheduling Order setting forth the exact time frame for the various filings and any pre-hearing exchanges.
Starting A Streamlined Arbitration With JAMS
Compared to other arbitration methods, the JAMS Streamlined Arbitration Rules are tailored to achieve efficiency and economy. When parties agree to use the JAMS Streamlined Arbitration Rules, they are committing to a specialized process designed to accelerate the proceedings and reduce costs without sacrificing the critical components of a fair arbitration. The parties can further customize the process by allowing the JAMS Arbitrator to resolve discovery issues without the need for motion practice, thus eliminating the motion practice that often plagues complicated arbitrations. The parties also have the option to incorporate regular jurisdictional or procedural discovery into the appellate provisions of their agreement and set an expedited timetable for resolving it.
Even the timeline is dramatically shortened when parties choose the JAMS Streamlined Rules. The JAMS Arbitrator is available for the evidentiary hearing usually within 60 days of the appointment. This is significantly faster than the standard arbitration timeline where the parties may not receive a scheduled hearing date for several months due to lengthy warrants on disputes over discovery , the designation of experts, etc. The parties can elect to request an expedited hearing -one that occurs within 30 days of the arbitrator’s appointment – to resolve the dispute if the issue is narrow, the parties are in agreement on the most appropriate resolution, and the other party consents.
The streamlined arbitration process is different from litigation in ways that benefit the parties more than in the traditional adversarial proceeding. This means that parties can foreseeably minimize their exposure during arbitrations while expediting the process through the use of deadlines and limits on the length of the briefing and oral arguments.
Benefits of Using JAMS Streamlined Rules
While JAMS Streamlined Arbitration Rules offer significant advantages for certain types of cases, there are some potential considerations that parties should keep in mind prior to agreeing to use the rules. Particularly for more complex matters, the streamlined arbitration rules put limitations on the complexity of a case and discovery that can be requested. In cases where a simple and quick process are not primary concerns for a party, it simply may not be worth using the expedited rules. Parties should take extra care prior to agreeing to these rules because once agreed upon, those parties are bound to the chosen forum and rules. However, if the rules had been known to be a potential consideration early in the dispute, the issue could have been raised and negotiated prior to any agreement on a particular forum. The takeaway is for a party to consider the forum when a dispute arises, including if streamlined rules are appropriate or if more expansive rules are needed.
Drawbacks of Streamlined Arbitration in JAMS
In conclusion, the JAMS Streamlined Arbitration Rules offer an expeditious means of resolving disputes that is easier and more affordable than judicial resolution. Through an emphasis on efficiency and effective fiscal management, the Streamlined Rules provide crucial protections against costly and time-consuming litigation . Notwithstanding this essential component, parties must use great care when employing these rules to craft an enforceable arbitration agreement: the meaningful enforcement of pre-dispute agreements to arbitrate in particular is often predicated upon proper structure and formulation of the agreement’s terms. By contemplating and expediting the drafting process with expert assistance, parties can assure themselves that their specific agreements will be honored and enforced in the event of a dispute.