The arbitration process saves time and money.
The International Institute for Conflict Prevention & Resolution (CPR) is a nonprofit organization that serves as a resource for the resolution of business-related disputes. Membership consists of general counsel and senior lawyers of Fortune 1000 organizations and partners of top law firms around the world. The CPR Rules for Non-Administered Arbitration were developed to make the arbitration process fair, fast and economical.
General Rules
CPR rules govern arbitration except when the rules are in conflict with a mandatory provision of arbitration law. Notices required under these rules must be in writing and delivered to the recipient's address. The party who begins arbitration ("Claimant") must give a notice of arbitration to the "Respondent." The Respondent has 20 days to give the Claimant a notice of defense. Failure to send a notice of defense means that all the claims in the notice of arbitration will be treated as if they are denied. Respondents may include a counterclaim in their defense. If they do, the Claimant has 20 days to respond. Parties to the arbitration may be represented by anyone they choose.
Tribunal Rules
The Tribunal consists of two arbitrators, one appointed by each of the parties to the arbitration. The third arbitrator is appointed by the first two arbitrators and chairs the group. The party-appointed arbitrators should not know which party appointed them. If the parties fail to appoint arbitrators, CPR will select them. Either party may challenge an arbitrator if there is a justifiable reason to doubt his impartiality or independence.
Conduct Rules
The Tribunal can impose reasonable time limits on each phase of the arbitration, including limiting the time each party has to present its case and rebuttal. The Tribunal can grant any remedy allowed under the laws applicable to the dispute. It may issue orders to protect the confidentiality of proprietary information and trade secrets. The Tribunal decides how the parties present their cases. It can take measures to preserve assets and order security measures taken as part of the preservation. The Tribunal can also make awards, but awards must be made in writing and include the reasoning behind them. Awards are final and binding on both parties.
Miscellaneous Rules
The Tribunal can impose any remedy it thinks fair, including an award by default, when either party fails to comply with the rules. Arbitrators shall be fairly compensated for time, travel and other expenses. Unless there is an agreement to the contrary, the Tribunal can divide the cost of arbitration between the parties as it sees fit. It can request that each party deposit an amount of money in advance to cover expected costs. At the end of proceedings, the Tribunal should return any money not spent. Unless otherwise agreed, the parties, the Tribunal and the CPR should treat the proceedings and decisions as confidential, except as otherwise required by law. Either party can propose settlement negotiations at any time. If the parties settle the dispute before an award is made, the Tribunal will end arbitration.
