ADR & the Law

TWENTY-SECOND EDITION

Developments in the Law: 2005

JP Juris

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EDITORIAL BOARD

From the American Arbitration Association

Ted E. Pons, Vice President of Publications Susan C. Zuckerman, Supervising Editor

From the Fordham International Law Journal Hoyoon Nam, ADR Editor, vol. 22

Allison Maimona, ADR Editor, vol. 22

From the Fordham Urban Law Journal David Reichenberg, ADR Editor, vol. 22

Marisa Pizzolato, ADR Editor, vol. 22

The ADR Editors wish to extend their thanks to the following individuals for their assistance with ADR & the Law

Shari Alexander Robin Boucard Lauren Gans Carson Pulley Myka Todman

vii

TABLE OF CONTENTS Preface to the 22nd Edition........................................................................... v Introduction to the 22nd Edition ................................................................. xv Part I. ALTERNATIVE DISPUTE RESOLUTION IN THE UNITED STATES .......................................................... 1 Chapter 1. Significant Decisions by Federal and State Courts in 2005 ........................................................................................ 3 Case Digests ............................................................................................ 3 Federal Appeals Court Decisions .................................................. 3 Commercial—Third Circuit, Tenth Circuit ................................... 3 Consumer—Fourth Circuit ........................................................... 6

Employment—District of Columbia Circuit, First Circuit, Third Circuit, Eleventh Circuit................................................... 9

Employment/Securities—Ninth Circuit ..................................... 15 Energy—Tenth Circuit.................................................................... 16 Franchising—Ninth Circuit ........................................................... 17 Insurance—Seventh Circuit ............................................................ 19 Intellectual Property—District of Columbia Circuit, Second Circuit, Tenth Circuit....................................................... 20 Labor— District of Columbia Circuit, Federal Circuit, First Circuit, Second Circuit, Third Circuit, Seventh Circuit, Eighth Circuit, Ninth Circuit ........................... . 25 Labor/Construction—Fifth Circuit ............................................. 37 Mediation—Third Circuit .............................................................. 38

Securities—Second Circuit ............................................................. 39 Taxation—Second Circuit ............................................................... 41 Telecommunications—First Circuit............................................. 42 Federal District Court Decisions ..................................................... 43 Commercial—Southern District of New York ............................... 43 Consumer—Middle District of Alabama ....................................... 45 Mediation—District of Columbia, District of Maine....................... 46

Mediation/Bankruptcy—Eastern District of Michigan, Northern District of Ohio........................................... 48

viii ADR & the Law State Court Decisions ........................................................................ 51 Commercial—California ................................................................ 51 Construction—Colorado, Maryland, Massachusetts, Rhode Island............................................................................... 52 Consumer—Florida, Georgia, Oklahoma ...................................... 56 Employment—Connecticut, Mississippi, West Virginia ............................................................................. 59 Employment/Securities—New York .......................................... 62 Labor—Alaska, Massachusetts, New York, Pennsylvania, Rhode Island......................................................... 64 Mediation—New Jersey .................................................................. 69 Chapter 2. Labor ........................................................................................... 71 Commentary.............................................................................................. 71 Implementing Interest-Based Negotiation: Conditions for Success with Evidence from Kaiser Permanente .............................................................Leib Levanthal 71 Chapter 3. Religion ....................................................................................... 83 Commentary.............................................................................................. 83

Operation Restoration: The Delicate Dance of Christian Conciliation.................................................... Suzanne E. White 83 Chapter 4. Social and Historical Currents in ADR................................... 111 Commentary.............................................................................................. 111

ADR and the Culture of Litigation in the United States of America ..........................................................Oscar G. Chase 111 Alternative Dispute Resolution: A Strategy for Combining Profit and Principle in Resolving Business Conflicts ........................................ Steven L. Schwartz 133

Chapter 5. Domestic Alternative Dispute Resolution Legislation......... 157 State Developments 2005............................................................................. 157 Alabama Code of Ethics for Arbitrators in Commercial Disputes ............ 157 Arkansas Automobile Dealer’s Anti-Coercion Act ........................................ 157 California Arbitration: Legal Representation.................................................... 158

Table of Contents ix Iowa Uniform Mediation Act ..................................................................... 158 Kentucky Joint Local Rules of Civil Practice, Alternative Dispute Resolution......................................................................................... 159 Louisiana Local Rules of Court Applicable to Bankruptcy Proceedings in the U.S. District Court for the Western District of Louisiana, Voluntary Mediation........................................................................................ 159 Maryland Election to Waive Arbitration of Health Care Malpractice Claims........................................................................ 160 Mediation of Child Custody and Visitation Disputes................... 160 Lawyer Serving as Third-Party Neutral........................................... 161 Qualifications and Selection of Persons Other than Mediators and Neutral Experts................................................... 161 Minnesota Lawyer Serving as Third-Party Neutral........................................... 162 Nevada Rules Governing Alternative Dispute Resolution......................... 163 New York Election Law ....................................................................................... 163 Arbitration, Provisional Remedies ................................................... 164 North Carolina Clerks May Order Mediation ............................................................ 165 Family Law Arbitration Act .............................................................. 165 Ohio Uniform Mediation Act ..................................................................... 166 Oklahoma Revised Uniform Arbitration Act .................................................... 166 Oregon Courts – Circuit Courts – Arbitration and Award ........................ 167 Domestic Relations – Juvenile Dependency Proceedings – Mediation.............................................................. 167

South Carolina Civil Remedies and Procedures: Medical Malpractice Actions ...................................................................... 168

x ADR & the Law Utah Uniform Arbitration Act ................................................................... 168 Husband and Wife – Divorce Mediation Program....................... 169 Washington Mandatory Arbitration....................................................................... 169 Uniform Mediation Act ..................................................................... 170 Part II. INTERNATIONAL ALTERNATIVE DISPUTE RESOLUTION............................................................................... 171 Chapter 6. Significant Decisions in 2005 by U.S. Courts Concerning International Alternative Dispute Resolution ...................... 173 Case Digests .............................................................................................. 173 Federal Appeals Court Decisions .................................................... 173 Commercial—Second Circuit, Sixth Circuit................................... 173 Public Sector—District of Columbia Circuit .................................. 178 Employment—Fifth Circuit .......................................................... 179 Federal District Court and Bankruptcy Court Decisions............. 179 Corporate— Southern District of Florida, Southern District of New York................................................................... 181 Chapter 7. International Arbitration in Specific Countries ..................... 185 Commentary.............................................................................................. 185 Arbitration in Portugal: Overview and Practical Considerations ...................Manuel P. Barrocas and Claudia Cruz 185 An Act on Mediation of Civil Matters in Finnish Courts ....................................................................................... Robert Mattson 193 The Belgian Law on Mediation: An Early Overview ..........................................................................................Luc Demeyere 199 Social Arbitration in Collective Labor Disputes in Poland ...........................................................................................Artur Rycak 208 Chapter 8. International Dispute Resolution: Mass Claims .................... 225 Commentary.............................................................................................. 225 The Work of the Property Claims Commission of the German Foundation “Remembrance, Responsibility and the Future”................................Pierre A. Karrer 225

Table of Contents xi Chapter 9. New International Alternative Dispute Resolution Legislation and Rules ................................................................ 353 Poland’s Code of Civil Procedure (Mediation Provisions)................ 353 APPENDICES .............................................................................................. 361 American Arbitration Association: A Brief Overview ....................... 363

Information on the Joint Venture with the Fordham International Law Journal and the Fordham Urban Law Journal ............................................................................. 364

Information on the Fordham International Law Journal ................. 364 Information on the Fordham Urban Law Journal.............................. 365 INDEX............................................................................................................ 371 ADDITIONAL MATERIALS ........................................................... CD-ROM I. American Arbitration Association Regional Offices II. American Arbitration Association Rules and Procedures Arbitration Rules for the Real Estate Industry (including a Mediation Alternative). Amended and effective September 1, 2007 Arbitration Rules for Wills and Trusts. Effective September 15, 2005 Commercial Arbitration Rules and Mediation Procedures (including Procedures for Large, Complex Commercial Disputes). Amended and effective September 1, 2007 Construction Industry Arbitration Rules and Mediation Procedures (including Procedures for Large, Complex Commercial Disputes). Amended and effective September 1, 2007 Dispute Resolution Rules for Professional Accounting and Related Services Disputes. Amended and effective September 1, 2007 Employment Arbitration Rules and Mediation Procedures. Amended and Effective July 1, 2006 Home Construction Arbitration Rules and Mediation Procedures. Effective June 1, 2007 International Commercial Arbitration Supplementary Procedures. Amended and effective April 1, 1999 International Dispute Resolution Procedures

xii ADR & the Law (including Mediation and Arbitration Rules). Amended and effective March 1, 2008 Labor Arbitration Rules (including Expedited Labor Arbitration Rules). Amended and effective August 1, 2007 Procedures for Cases under the UNCITRAL Arbitration Rules. Effective September 15, 2005 Supplementary Rules for Class Arbitrations. Effective Date October 8, 2003 Supplementary Procedures for Consumer-Related Disputes. Effective September 15, 2005 Supplementary Rules for Domain Name Disputes. Supplementary Rules for the Resolution of Patent Disputes. Amended and effective January 1, 2006 Supplementary Procedures for AAA Online Arbitration. Supplementary Rules for the Resolution of Intra-Industry U.S. Reinsurance and Insurance Disputes. Amended and effective September 15, 2005 Wireless Industry Arbitration Rules (Sponsored by the Cellular Tele-communications Industry Association). Effective July 1, 2003 III. Codes, Protocols, Statements of Ethics American Arbitration Association Code of Ethics for Employees Statement of Ethical Principles for the American Arbitration Association, an ADR Provider Organization. Code of Ethics for Arbitrators in Commercial Disputes. Effective March 1, 2004 Model Standards of Conduct for Mediators. September 2005 A Due Process Protocol for Mediation and Arbitration of Statutory Disputes Arising out of the Employment Relationship. Commission on Health Care Dispute Resolution— Final Report. July 27, 1998 Consumer Due Process Protocol. eCommerce Dispute Management Protocol.

Table of Contents xiii IV. American Arbitration Association Guides A Guide for Commercial Arbitrators. A Guide to Mediation and Arbitration for Business People. Amended and Effective July 2003 A Guide to the Management of Large, Complex Cases. Effective August 1, 2003 Drafting Dispute Resolution Clauses — A Practical Guide. Amended and Effective July 1, 2004 Resolving Commercial Financial Disputes — A Practical Guide (including Sample Clauses and Mediation and Arbitration Rules). Amended and Effective September 1, 2005 Resolving Employment Disputes — A Practical Guide. Amended and Effective July 1, 2003 Resolving Professional Accounting and Related Services Disputes — A Guide to Alternative Dispute Resolution. V. American Arbitration Association Q & As Arbitrator Fees and Expenses in International Cases Award Preparation for International Cases Supplementary Procedures for Consumer-Related Disputes Q & A Disclosure and Challenge of an Arbitrator

Disclosure and Challenge of an Arbitrator in International Cases

Enhanced Neutral Selection Process for Large Complex Cases How to Commence an AAA Arbitration Locale Determinations Locale Determinations in International Cases Subpoenas Arbitrating under the National Rules for the Resolution of Employment Disputes (NRRED). Amended and effective September 15, 2005. VI. American Arbitration Association Downloadable Forms Labor and Employment Forms Labor Arbitration Rules Demand for Arbitration Employment Arbitration Rules Demand for Arbitration

xiv ADR & the Law California: Demand for Arbitration Form for Employment-Related Disputes Commercial/Business Forms Commercial Arbitration Rules Demand for Arbitration Submission to Dispute Resolution-Mediation and Arbitration Construction Industry Demand for Arbitration California Forms: Supplementary Procedures for Consumer-Related Disputes Form Demand for Arbitration Request for Mediation Subpoena Subpoena Duces Tecum Supplementary Procedures for Consumer-Related Disputes Form

VII. International Treaties Inter-American Convention on International Commercial Arbitration (the Panama Convention) North American Free Trade Agreement United Nations 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention)