Arbitration Rules of Procedure

Colorado Mediators & Arbitrators is affiliated with United States Arbitration Association (USADR).

Colorado Mediators & Arbitrators adheres to the procedural rules of its affiliate, United States Arbitration Association™, and is authorized to administer all arbitration cases filed in the state of Colorado utilizing these rules.

Table of Contents

    Rule A-1. Purpose of Arbitration Proceedings
    Rule A-2. Governing Law, Designation of Rules, USADR Case Administration
    Rule A-3. Interpretations of Rules and Enforcement
    Rule A-4. Definitions
    Rule A-5. Size and Classification of Claim
    Rule A-6. Computation of Time
    Rule A-7. Service and Filing
    Rule A-8. Representation
    Rule A-9. Arbitrator Selection or Appointment by Size of Claim
    Rule A-10. Type of Hearing Determined by Amount of Claim
    Rule A-10.1 Objection to Documentary or Electronic Hearing
    Rule A-11. Cause to Remove an Arbitrator
    Rule A-12. Arbitrator Disclosures
    Rule A-13. Acknowledgment of Oath of Arbitrator
    Rule A-14. Ex-Parte Communications
    Rule A-15. Initiation of Arbitration by Claimant
    Rule A-16. Response to Claim
    Rule A-17. Response to Counterclaim
    Rule A-18. Change of Claim or Counterclaim or Adding New Claims
    Rule A-19. Settlements
    Rule A-20. Postponements
    Rule A-21. Subpoena
    Rule A-22. Exchange of Exhibits and Information
    Rule A-23. Direct Communications between Parties and Arbitrator
    Rule A-24. Dismissal of Proceedings
    Rule A-25. Confidentiality
    Rule A-26. Failure to Appear
    Rule A-27. Opening Statements
    Rule A-28. Presentation of Case
    Rule A-29. Oaths of Witnesses
    Rule A-30. Rules of Evidence
    Rule A-31. Closing Arguments
    Rule A-32. Reopening of Hearings
    Rule A-33. Time and Form of Award

Rule A-1. Purpose of Arbitration Proceedings

Arbitration proceedings are meant to be a cost-efficient, fair and decisive way of settling disputes. Arbitration is binding upon the parties to such proceeding. Arbitration awards cannot be overturned or appealed except under very limited circumstances as provided by governing law.

Rule A-2. Governing Law, Designation of Rules, USADR Case Administration

Arbitration is a creature of contract.  Contractual provisions may be extremely vague or very specific about governing law (federal or state), rules of procedure, arbitrator appointment process, and identifying which court of jurisdiction for enforcement.  It is critical to have a structure for judicial enforcement; therefore USADR utilizes the following guidelines when parties submit their dispute for arbitration.

a)  Contract Silent on Governing Law: The arbitration will be conducted under Federal Arbitration Act (FAA) unless parties agree otherwise. Federal District Court has jurisdiction for arbitrations conducted under FAA. The FAA is silent on the issue of punitive damages.

b)  Contract Names State Law: The arbitration will be conducted under the state law specified, unless parties agree otherwise. The state district court has jurisdiction for arbitrations conducted under its arbitration act. Punitive damages vary according to state.

c)  Contract is Silent on Rules of Procedure: The arbitration will be conducted utilizing USADR’s Rules of Procedure. Where USADR's rules conflict with governing law, the governing law will prevail.

d)  Stated Rules of Procedure: USADR or its designated state-specific affiliate (Colorado Mediators & Arbitrators administers all claims filed in the state of Colorado) may administer an arbitration action utilizing stated rules in the arbitration clause with the agreement of the parties. The parties shall indicate their agreement on the appropriate submission agreement according to the claim amount. CoMA shall appoint the arbitrator for small claims or mid-size claims and shall follo; the appointed arbitrator shall then utilize the specified rules for all subsequent matters. Where the rules of procedure conflict with governing law, the governing law will prevail.

Rule A-3. Interpretations of Rules and Enforcement

The arbitrator shall be empowered to interpret and determine the applicability of all provisions under these rules, including the power to rule on his or her own jurisdiction, and any objections with respect to the existence, scope or validity of the arbitration agreement.

Such interpretations and actions to obtain compliance shall be final and binding upon the parties.

The arbitrator shall be empowered to determine the existence or validity of a contract which contains an arbitration clause or provision. An arbitration clause shall be treated as a separate agreement, independent of the other terms of the contract.

Objections by a party or parties to the jurisdiction of the arbitrator or to the arbitrability of a claim or counterclaim must be in writing and delivered to USADR no later than the filing of the answering statement to the claim or counterclaim that gives rise to the objection. The arbitrator may rule on such objections as a preliminary matter or as part of the final award.

The arbitrator may grant any legal, equitable, or other remedy or relief as provided by governing law.

Rule A-4. Definitions

An on-line glossary is provided. The definitions found in the glossary are merely informational.

Rule A-5. Size and Classification of Claim

USADR rules endeavor to provide equitable resolution by taking into consideration the complexity of the case based on the size of claim and the parties’ need for affordability and expediency. Size of claim refers to the disclosed claim or counterclaim amount of any party exclusive of interest, arbitration fees and costs. If a counterclaim exceeds the claim amount for the procedure filed by the claimant, the entire case will be administered under the arbitration procedures based on the amount of counterclaim, unless the parties agree otherwise.

a)  Claims of $75,000 and over are Determined by Standard Arbitration Procedures.  Standard Arbitration Procedures utilize a combination of teleconference, webconference and physical hearing of the testimony and evidence presented by the parties.  With the agreement of the parties, the arbitration may be conducted under Virtual Arbitration Procedures described in these rules, and the Virtual Fee Schedule shall apply.

b)  Claims between $15,000 - $74,999 are Considered Mid-Size Claims and are Determined by Virtual Hearing.  Virtual Hearing utilizes teleconference and/or webconferencing for the testimony and evidence presented by the parties.  Either party to a Virtual Arbitration may require the use of Standard Arbitration Procedures and the fee schedule for Standard Arbitration shall then apply.  The party who requires Standard Procedures shall pay all costs in excess of the Virtual Hearing fees for both parties at the time of the demand; the arbitrator may shift these costs as equitable in the award.  If a party demands Standard Arbitration but does not pay the additional costs associated with these procedures, the arbitration will move forward according to the Virtual Hearing Procedures described in these rules.

c)  Claims of $14,999 & under are Considered Small Claims and are Determined by Documentary Hearing.  Either party to a Small Claim may require the use of Virtual Arbitration Procedures or Standard Arbitration Procedures and the fee schedule associated with that procedure shall apply.  The party requiring the Virtual or Standard Arbitration Procedure shall pay costs in excess of the Small Claims Fee for both parties at the time of the demand.  The arbitrator may shift these costs as equitable in the award.  If a party demands Virtual or Standard Arbitration but does not pay the additional costs associated with these procedures, the arbitration will move forward according to the Small Claims Documentary Procedures described in these rules.

Rule A-6. Computation of Time

Unless otherwise noted in these rules, a period of days is to be considered a period of “business” days, not “calendar” days.

In computing any period of time under these rules, the day of the act or event from which the designated period of time begins to run shall not be included. If a due date falls on a Sunday or a holiday in which there is no mail delivery, such due date is extended to the next day.

Rule A-7. Service and Filing

a)  Service of the submission agreement to USADR and the respondent(s) may be made by mail or other means where attempt of delivery can be demonstrated. Service and filing are accomplished on the date of mailing utilizing overnight mail service, certified mail, or USPS with a delivery receipt request, email with returned receipt, civil or private process service or in the case of other means of service, on the date of delivery or on the date of electronic filing.

b)  Once the submission agreement has been properly served on the respondent(s), all responses and notices after that may be sent by email, regular mail, overnight or express mail, fax, or any suitable electronic means.

c)  A person has notice if the person has knowledge of the notice or has received notice.

d)  A person receives notice when it comes to the person’s place of residence or place of business, or at another location held out by the person as a place of delivery of such communications.

e)  Unless a person objects to the lack of notice or the insufficiency of notice not later than the beginning of the first preliminary arbitration hearing, a person who appears at the arbitration hearing waives any objection to the lack of notice or insufficiency of notice.

f)  Filing with USADR shall be made on the same date as service on a party.

Rule A-8. Representation

All parties shall have the right to representation by persons of the party’s choice or legal counsel at any stage of the proceedings. Legal counsel shall file an entry of appearance with USADR and all parties within three (3) business days of being retained, but not less than three (3)business days prior to a scheduled preliminary conference or hearing.

The arbitrator may, in his or her sole discretion, assign all associated costs of rescheduling a preliminary conference or hearing resulting from untimely entry of appearance to the party(s) retaining such counsel.

Rule A-9. Arbitrator Selection or Appointment by Size of Claim

a)  Standard Claims. Unless otherwise agreed to by the parties, an arbitration panel shall consist of one (1) neutral arbitrator for claims amounts between $75,000 - $500,000, and three (3) neutral arbitrators for claims greater than $500,000.
     1)  Panel of One Arbitrator.  The parties shall be provided a list by the case administrator of hree potential arbitrators.  Each party may indicate his or her first and second choice. The arbitrator is appointed either by:
             A) election of the parties as the jointly chosen arbitrator from the proposed list or
             B) shall be appoined as the arbitrator if the parties do not act to select an arbitrator from the proposed list, who may only be removed for cause.

     2)  Panel of Three Arbitrators.  The Case Administrator will provide to the parties a list of five (5) potential arbitrators.  The parties may each strike one proposed arbitrator and rank the remaining list according to their first, second, and third choices.  If the parties are unable to come to an agreement on the choice of one or more arbitrators, the Case Administrator will then assign additional arbitrators to the panel to make three arbitrators in total.  Arbitrators assigned by the Case Administrator may only be removed for cause.  The Case Administrator shall appoint the chairperson from among the appointed panel members.

b)  Mid-Size Claims and Small Claims. The Case Administrator shall appoint one (1) neutral arbitrator to hear and decide all such claims and may replace an appointed arbitrator with another arbitrator from its panel if the appointed arbitrator resigns, withdraws, or is otherwise unable or unwilling to hear and decide the case promptly and in an expedited manner.

Rule A-10. Type of Hearing Determined by Amount of Claim

a)  Standard Claims hearings utilize one or more teleconferences and a physical hearing of the testimony and evidence presented by the parties and their attorneys, when represented.  The necessary hearing time is determined by the parties.

b)  Mid-Size Claims of $14,999 & Under consist of a virtual hearing.  A virtual hearing is conducted by means of teleconference, web conference, or any other electronic communication means directed by the arbitrator.  Three (3) hours of arbitrator time is allotted for virtual hearings.. Claimants and respondents are each given approximately one hour and 30 minutes for presentation of their evidence, cross-examination, and rebuttal, with the remaining hour to be held in reserve for the deliberation and simple award writing by the arbitrator. Parties will not be allowed to exceed their allotted time without the consent of the arbitrator. If the presentation of evidence and arguments by the parties takes longer than three hours of arbitrator time, additional charges will apply pursuant to the Fee Schedule. A flat fee is offered when total arbitrator time on the case does not exceed four hours, three (3) of which are used in teleconference or web conference, with one (1) hour reserved for deliberation and award writing.  A preliminary one-hour teleconference between the arbitrator and the parties may be scheduled at the request of either of the parties or the arbitrator, by the Case Administrator.  The hearing shall be conducted by the Arbitrator in whatever manner will most expeditiously permit full presentation of the evidence and arguments of the parties.

c)  Small Claims are decided by the arbitrator's examination of the Documentary Evidence presented by the parties to the arbitrator.  Documentary evidence may include written claims and responses, a copy of the original signed contract, and electronic files and evidence submitted by the parties.  Claims of under $14,999 may be submitted for Virtual or Standard Arbitration Procedures to allow for a teleconference, web conference, or physical hearing of the testimony and evidence, and the associated Fee Schedule for the Virtual or Standard Procedure shall apply.

Rule A-10.1 Objection to Documentary or Electronic Hearing

Any party may demand a physical hearing of the evidence regardless of the claim amount.  The party demanding the physical hearing shall pay all additional fees for such hearing for all parties involved.  The arbitrator may shift these costs in the award at his/her discretion.

Rule A-11. Cause to Remove an Arbitrator

An individual who has a known, direct, and material interest in the outcome of the arbitration proceeding or a known, existing, and substantial relationship with a party or its experts or counsel may not serve as an arbitrator if the agreement requires the arbitrator to be neutral.

Arbitrator candidates shall supply USADR with a current resume and a completed arbitrator disclosure checklist, each of which shall be distributed to the parties to an arbitration at the time that the particular arbitrator is appointed by USADR.

A party may request that an arbitrator be disqualified by filing with USADR a written request stating the circumstances and specific material reasons for the disqualification. A party who knows or has reason to know of circumstances disqualifying an Arbitrator must immediately disclose those circumstances to USADR. USADR may then remove the arbitrator based upon its review of the request. A party who fails to timely and properly disclose disqualifying circumstances agrees to accept the arbitrator and waives any later objection to the arbitrator in the arbitration or any other legal proceeding.

Rule A-12. Arbitrator Disclosures

Within three (3) business days of appointment to the case, the Arbitrator shall make disclosures of any actual, apparent or likely conflicts of interest or bias that the arbitrator may have. USADR will then make the disclosures known to the parties to decide, within three (3) of receipt, whether the arbitrator is acceptable to them and if not, USADR will appoint another Arbitrator to hear the case. Arbitrators have a continuing duty to disclose.

Rule A-13. Acknowledgment of Oath of Arbitrator

At the commencement of proceedings (pre-hearing conference or hearing) the arbitrator shall acknowledge if s/he has taken the Oath of Arbitrators administered by USADR.

Rule A-14. Ex-Parte Communications

Parties may not communicate with the arbitrator outside the presence of all parties.

Rule A-15. Initiation of Arbitration by Claimant

The claimant shall initiate arbitration by filing with USADR the required paperwork according to the claim amount. Claimant shall concurrently serve, by certified mail or other means where attempt of delivery can be demonstrated, upon the respondent(s) one copy of the arbitration submission agreement and one copy of the statement of claim. The submission agreement must be signed by the claimant with written or electronic signature.

An executed Standard Arbitration Submission Agreement shall be submitted for claims from $75,000 & over, with a statement of claim of the controversy in dispute, a copy of the signed contract at issue, and the required filing fee. The statement of claim shall specify the relevant facts and the remedies sought.

An executed Mid-Size Submission Agreement shall be submitted for claims of $74,999 & Under, with a statement of claim of the controversy in dispute, a copy of the signed contract at issue, together with all documents and exhibits in support of the claim, and the required filing fee. The statement of claim shall specify the relevant facts and the remedies sought.

An executed Small Claims Arbitration Submission Agreement shall be submitted for claims of $14,999 & Less, with a statement of claim of the controversy in dispute, together with all documents and exhibits in support of the claim, and the required filing fee. The statement of claim shall specify the relevant facts and the remedies sought.

Rule A-16. Response to Claim

The party or parties upon whom an arbitration submission agreement has been served may, within ten (10) calendar days after service, file a written response to the claim by completing the USADR response form and providing an answering statement that specifies all relevant facts and available defenses to the statement of claim submitted. If a counterclaim is asserted, it shall contain a statement setting forth the nature of the counterclaim and the remedy sought. Two (2) copies of the response shall be filed with USADR along with the required filing fee and one copy shall be mailed or emailed, with a delivery confirmation requested, directly to the claimant at the address shown on the submission agreement. If no response is filed within the ten (10) day time limit, the claim will be treated as having been denied by the respondent.

If no answering statement is filed within ten (10) days, respondent will be deemed to deny the claim. Failure to file an answering statement shall not serve to delay the arbitration nor relieve the respondent’s obligation of their portion of the arbitration costs and fees.

Rule A-17. Response to Counterclaim

Claimant may, within ten (10) calendar days after service of the response and counterclaim, file a written response to the counterclaim. If such a response is filed, two copies shall be filed with USADR and one copy shall be mailed or emailed, with a delivery receipt requested, directly to respondent at the address shown on the counterclaim. If no response is filed, the counterclaim shall be deemed to be denied by the claimant.

Rule A-18. Change of Claim or Counterclaim or Adding New Claims

Once a claim or counterclaim has been filed, it cannot be increased in amount and no new claims may be added without the consent of the arbitrator.

Rule A-19. Settlements

Parties may agree to settle their dispute at any time prior to the delivery of the award.

If the parties agree to settle their dispute, they will remain responsible for payment of fees incurred according to the fee schedule.

The terms of a settlement agreement do not need to be disclosed to the arbitrator. However, if the parties fail to agree on the allocation of outstanding fees, the fees shall be divided equally between all parties.

The parties may request that the arbitrator incorporate the settlement into an award.

Rule A-20. Postponements

Except in extraordinary circumstances, USADR or the arbitrator may grant a party no more than one seven (7) day extension of time to respond to the demand for arbitration or counterclaim.

Rule A-21. Subpoena

The arbitrator and any counsel of record to the proceeding shall have the power to subpoena witnesses and subpoena documents as provided by law. All parties shall be given a copy of a subpoena upon its issuance.

Rule A-22. Exchange of Exhibits and Information

a)  Standard Claims: An initial pre-hearing teleconference shall be scheduled by the Case Administrator between the arbitrator and the parties to address the parties’ procedural questions, and establish a schedule for discovery, document, and exhibits exchange dates. At the request of any party or at the discretion of the arbitrator, the arbitrator may direct both the production of documents and other information and the identification and subpoena of any witnesses. The arbitrator shall resolve all disputes concerning the exchange of exhibits and/or information. A scheduling order shall be forwarded to the parties by the arbitrator with the established dates and procedural decisions after the initial pre-hearing teleconference takes place.

b)  Mid-Size Claims:  An initial pre-hearing teleconference may be scheduled by the Case Administrator between the arbitrator and the parties to address the parties’ procedural questions, and establish a schedule for discovery, document, and exhibits exchange dates. At the request of any party or at the discretion of the arbitrator, the arbitrator may direct the production of documents. The arbitrator shall resolve all disputes concerning the exchange of exhibits and/or information. A scheduling order shall be forwarded to the parties by the arbitrator with the established dates and procedural decisions after the initial pre-hearing teleconference takes place.

c)  Small Claims: The claimant shall submit copies of all documents and exhibits they wish the arbitrator to consider at the time of filing the submission agreement or response to counterclaim. The respondent in his/her response may submit copies of all exhibits they wish to the arbitrator to consider at the time of response to USADR and to the claimant.

Rule A-23. Direct Communications between Parties and Arbitrator

The arbitrator and all parties must agree whether direct communication can be used.  Direct communication is not ex-parte communication, but communication that does not include USADR's case administrator.

Parties may send the arbitrator only items that are listed in an order. Copies of all materials sent to the arbitrator must also be sent at the same time and in the same manner to all parties. Materials exceeding 15 pages shall be sent only by regular mail or overnight courier.

USADR shall receive copies of any orders and decisions made as a result of direct communications among the parties and the arbitrator.

Rule A-24. Dismissal of Proceedings

At any time during the course of arbitration, the arbitrator may, at the request of a party for good grounds, dismiss the proceeding and refer the parties to their judicial remedies, or to any dispute resolution forum agreed to by the parties, without prejudice to any claims or defenses available to any party.

The arbitrator may dismiss a claim, defense, or proceeding with prejudice for willful and intentional material failure to comply with an order of the arbitrator.

Rule A-25. Confidentiality

a)  A written, audio, video or visual record of mediation shall not be kept.

b)  Arbitration awards are not published by USADR.

Rule A-26. Failure to Appear

If any of the parties, after due notice, fails to appear at a hearing or at any continuation of a hearing session, the arbitrator(s) may, in their discretion, proceed with the arbitration of the controversy. In such cases, all awards shall be rendered as if each party had entered an appearance in the matter submitted.

Rule A-27. Opening Statements

Generally the claimants proceed first in opening statements, followed by the respondent’s opening statement, with no rebuttal argument being permitted. The hearing procedures may be varied in the discretion of the arbitrator, provided all parties are allowed a full and fair opportunity to present their respective cases.

Rule A-28. Presentation of Case

Generally the claimants present their case first, followed by the respondents. This practice may be varied to allow each witness to be examined and cross-examined in one period of time so that such witness would not have to be recalled for presentation in another party’s case. The hearing procedures may be varied in the discretion of the arbitrator, provided all parties are allowed a full and fair opportunity to present their evidence.

Rule A-29. Oaths of Witnesses

All testimony shall be under oath or affirmation.

Rule A-30. Rules of Evidence

The arbitrator shall determine the materiality and relevance of any evidence proffered and shall not be bound by rules of evidence unless the parties have designated such rules in their arbitration agreement.

Rule A-31. Closing Arguments

The claimant generally proceeds first in closing argument, with rebuttal argument being permitted. Claimants may reserve their entire closing for rebuttal. The hearing procedures may be varied in the discretion of the arbitrator to provide all parties with a full and fair opportunity to present their respective cases.

Rule A-32. Reopening of Hearing

In extraordinary circumstances, the hearing may be reopened by the arbitrator(s) on their own motion or at the discretion of the arbitrator(s) upon application of a party at any time before the award is rendered.

Rule A-33. Time and Form of Award

a)  Small Claims and Mid-Size Claim Awards. The arbitrator may render an oral bench decision if comfortable doing so in electronic hearings, followed by a simple, written award. The arbitrator shall endeavor to render a simple award within ten (10) days of the virtual hearing or receipt of all submissions and evidence for a documentary hearing. All awards shall be in writing and signed by the arbitrator in such manner as is required by applicable law. Such awards may be entered as a judgment in any court of competent jurisdiction.

b)  Standard Claim Awards. A simple, written award shall be delivered unless the parties expressly request a reasoned award. The arbitrator shall endeavor to render a simple award within ten (10) days from the date the record is closed. If the parties have requested a reasoned award, the arbitrator shall endeavor to render the reasoned award within thirty (30) days from the date the record is closed.

c)  Unless the governing law directs otherwise, all awards rendered pursuant to these rules shall be deemed final. Although there is voluntary compliance with the majority of awards, parties may need to motion the court having appropriate jurisdiction to confirm, clarify, or vacate the award.

d)  The award shall contain the names of the parties and their counsel, if any; a summary of the issues in controversy; the damages and other relief awarded; the names of the arbitrator; and the signatures of the arbitrator concurring in the award.

e)  All monetary awards shall be paid within thirty (30) days of receipt unless a motion to vacate has been filed with a court of competent jurisdiction. An award shall bear statutory interest from the date of the award:
        1. if not paid within thirty (30) days of receipt,
        2. if the award is the subject of a motion to vacate which is denied, or
        3. as specified by the arbitrator in the award. Interest shall be assessed at the statutory rate in the state
            where the award was rendered, or at a rate set by the arbitrator.

f)  The Case Administrator serve a copy of the award on each party or the representative of the party. Delivery of the award shall be by any method available and convenient to the parties and that is reasonably expected to cause the award to be delivered to all parties or their counsel on the same day.  Acceptable delivery methods include, but are not limited to, registered or certified mail, hand delivery, and facsimile or other electronic transmission, including email.

g)  Arbitration Case Administrative Services are concluded upon delivery of the arbitration award.