throbber
FILED: NEW YORK COUNTY CLERK 02/25/2020 01:47 AM
`NYSCEF DOC. NO. 36
`
`INDEX NO. 654105/2019
`
`RECEIVED NYSCEF: 02/25/2020
`
`Exhibit C
`
`

`

`INDEX NO. 654105/2019
`FILED: NEW YORK COUNTY CLERK 02/25/2020 01:47 AM
`NYSCEF DOC. NO. 36
`RECEIVED NYSCEF: 02/25/2020
`
`1
`
`Rules Amended and Effective October 1, 2013.
`
`COMMERCIAL RULES
`
`Commercial
`
`Arbitration Rules and Mediation Procedures
`
`Including Procedures for Large, Complex Commercial Disputes
`
`Available online at adr.org/commercial
`
`Rules Amended and Effective October 1, 2013
`
`

`

`INDEX NO. 654105/2019
`FILED: NEW YORK COUNTY CLERK 02/25/2020 01:47 AM
`NYSCEF DOC. NO. 36
`RECEIVED NYSCEF: 02/25/2020
`Regional Vice Presidents
`
`States: Connecticut, Maine, Massachusetts,
`New Hampshire, Rhode Island, Vermont
`Karen Jalkut
`Vice President
`Phone: 617.695.6062
`Email: JalkutK@adr.org
`
`States: Indiana, Kentucky, North Carolina,
`Ohio, South Carolina, Tennessee, West Virginia
`Michelle M. Skipper
`Vice President
`Phone: 704.643.8605
`Email: SkipperM@adr.org
`
`States: Florida
`Rebecca Storrow, Ph.D.
`Vice President
`Phone: 954.372.4341
`Email: StorrowR@adr.org
`
`States: Arizona, Colorado, Kansas, Hawaii,
`Idaho, Montana, Nebraska, Nevada,
`New Mexico, Utah, Wyoming
`Lance K. Tanaka
`Vice President
`Phone: 303.831.0824
`Email: TanakaL@adr.org
`
`States: New York
`Jeffrey T. Zaino, Esq.
`Vice President
`Phone: 212.484.3224
`Email: ZainoJ@adr.org
`
`Rod Toben
`Vice President
`Phone: 972.774.6923
`Email: TobenR@adr.org
`Administers Cases in: AR, IL, IA, KS, LA, MN,
`MS, MO, NE, ND, OK, SD, TX, WI
`
`Yvonne Baglini
`Assistant Vice President
`Phone: 866.293.4053
`Email: BagliniY@adr.org
`Administers cases in: CT, DE, MA, ME, MI, NH,
`NJ, NY, PA, RI, VT, WV
`
`States: Delaware, District of Columbia,
`Maryland, New Jersey, Pennsylvania, Virginia
`P. Jean Baker, Esq.
`Vice President
`Phone: 202.223.7093
`Email: BakerJ@adr.org
`
`States: Oklahoma, Texas
`Andrew Barton
`Vice President
`Phone: 210.998.5750
`Email: BartonA@adr.org
`
`States: Alabama, Georgia
`John M. Bishop
`Vice President
`Phone: 404.320.5150
`Email: BishopJ@adr.org
`
`States: Arkansas, Illinois, Iowa, Michigan,
`Minnesota, Missouri, North Dakota,
`South Dakota, Wisconsin
`Svetlana Gitman, Esq.
`Vice President
`Phone: 773.820.7801
`Email: GitmanS@adr.org
`
`States: Alaska, California, Oregon,
`Washington
`Aaron Gothelf, Esq.
`Vice President
`Phone: 415.671.4053
`Email: GothelfA@adr.org
`
`States: City of Houston, Louisiana, Mississippi
`Ingeuneal C. Gray, Esq.
`Vice President
`Phone: 832.308.7893
`Email: GrayI@adr.org
`
`Case Management
`
`John M. Bishop
`Vice President
`Phone: 404.320.5150
`Email: BishopJ@adr.org
`Administers cases in: AL, DC, FL, GA, IN, KY,
`MD, NC, OH, SC, TN, VA
`
`Sandra Marshall
`Director of ADR Operations
`Phone: 559.490.1906
`Email: MarshallS@adr.org
`Administers cases in: AK, AZ, CA, CO, HI, ID,
`MT, NV, NM, OR, UT, WA, WY
`
`2
`
`RULES AND MEDIATION PROCEDURES
`
`American Arbitration Association
`
`

`

`INDEX NO. 654105/2019
`FILED: NEW YORK COUNTY CLERK 02/25/2020 01:47 AM
`NYSCEF DOC. NO. 36
`RECEIVED NYSCEF: 02/25/2020
`Table of Contents
`Important Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
`Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
`Standard Arbitration Clause . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
`Administrative Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
`Mediation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
`Large, Complex Cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9
`
`Commercial Arbitration Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
`R-1. Agreement of Parties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
`
`R-2. AAA and Delegation of Duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
`
`R-3. National Roster of Arbitrators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
`
`R-4. Filing Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
`
`R-5. Answers and Counterclaims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
`
`R-6. Changes of Claim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
`
`R-7. Jurisdiction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
`
`R-8. Interpretation and Application of Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
`
`R-9. Mediation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
`
`R-10. Administrative Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
`
`R-11. Fixing of Locale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
`
`R-12. Appointment from National Roster . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
`
`R-13. Direct Appointment by a Party . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
`
`R-14. Appointment of Chairperson by Party-Appointed Arbitrators or Parties . . . . . . . .16
`
`R-15. Nationality of Arbitrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
`
`R-16. Number of Arbitrators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
`
`R-17. Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
`
`R-18. Disqualification of Arbitrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
`
`R-19. Communication with Arbitrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
`
`R-20. Vacancies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
`
`R-21. Preliminary Hearing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
`
`R-22. Pre-Hearing Exchange and Production of Information . . . . . . . . . . . . . . . . . . . . . .19
`
`R-23. Enforcement Powers of the Arbitrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
`
`R-24. Date, Time, and Place of Hearing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
`
`R-25. Attendance at Hearings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
`
`R-26. Representation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
`
`R-27. Oaths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
`
`3
`
`Rules Amended and Effective October 1, 2013.
`
`COMMERCIAL RULES
`
`

`

`INDEX NO. 654105/2019
`FILED: NEW YORK COUNTY CLERK 02/25/2020 01:47 AM
`NYSCEF DOC. NO. 36
`RECEIVED NYSCEF: 02/25/2020
`
`R-28. Stenographic Record . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
`
`R-29. Interpreters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
`
`R-30. Postponements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
`
`R-31. Arbitration in the Absence of a Party or Representative . . . . . . . . . . . . . . . . . . . . .22
`
`R-32. Conduct of Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
`
`R-33. Dispositive Motions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
`
`R-34. Evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
`
`R-35. Evidence by Written Statements and Post-Hearing Filing of Documents or
`Other Evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
`
`R-36. Inspection or Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
`
`R-37. Interim Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
`
`R-38. Emergency Measures of Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24
`
`R-39. Closing of Hearing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
`
`R-40. Reopening of Hearing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
`
`R-41. Waiver of Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
`
`R-42. Extensions of Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
`
`R-43. Serving of Notice and Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
`
`R-44. Majority Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
`
`R-45. Time of Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
`
`R-46. Form of Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
`
`R-47. Scope of Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
`
`R-48. Award Upon Settlement—Consent Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
`
`R-49. Delivery of Award to Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
`
`R-50. Modification of Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
`
`R-51. Release of Documents for Judicial Proceedings. . . . . . . . . . . . . . . . . . . . . . . . . . . .29
`
`R-52. Applications to Court and Exclusion of Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
`
`R-53. Administrative Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
`
`R-54. Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
`
`R-55. Neutral Arbitrator’s Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
`
`R-56. Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
`
`R-57. Remedies for Nonpayment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
`
`R-58. Sanctions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
`
`4
`
`RULES AND MEDIATION PROCEDURES
`
`American Arbitration Association
`
`

`

`INDEX NO. 654105/2019
`FILED: NEW YORK COUNTY CLERK 02/25/2020 01:47 AM
`NYSCEF DOC. NO. 36
`RECEIVED NYSCEF: 02/25/2020
`Preliminary Hearing Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32
`P-1. General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32
`
`P-2. Checklist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32
`
`Expedited Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
`E-1. Limitation on Extensions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
`
`E-2. Changes of Claim or Counterclaim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
`
`E-3. Serving of Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
`
`E-4. Appointment and Qualifications of Arbitrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34
`
`E-5. Exchange of Exhibits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35
`
`E-6. Proceedings on Documents and Procedures for the Resolution of Disputes
`Through Document Submission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35
`
`E-7. Date, Time, and Place of Hearing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
`
`E-8. The Hearing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
`
`E-9. Time of Award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
`
`E-10. Arbitrator’s Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
`
`Procedures for Large, Complex Commercial Disputes . . . . . . . . . . . . . . . . . . . . . . . .37
`L-1. Administrative Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37
`
`L-2. Arbitrators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37
`
`L-3. Management of Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38
`
`Administrative Fee Schedules (Standard and Flexible Fees) . . . . . . . . . . . . . . . . . . .38
`
`Commercial Mediation Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
`M-1. Agreement of Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
`
`M-2. Initiation of Mediation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
`
`M-3. Representation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
`
`M-4. Appointment of the Mediator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40
`
`M-5. Mediator’s Impartiality and Duty to Disclose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40
`
`M-6. Vacancies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
`
`M-7. Duties and Responsibilities of the Mediator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
`
`M-8. Responsibilities of the Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
`
`M-9. Privacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
`
`M-10. Confidentiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
`
`M-11. No Stenographic Record . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43
`
`5
`
`Rules Amended and Effective October 1, 2013.
`
`COMMERCIAL RULES
`
`

`

`INDEX NO. 654105/2019
`FILED: NEW YORK COUNTY CLERK 02/25/2020 01:47 AM
`NYSCEF DOC. NO. 36
`RECEIVED NYSCEF: 02/25/2020
`
`M-12. Termination of Mediation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43
`
`M-13. Exclusion of Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43
`
`M-14. Interpretation and Application of Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43
`
`M-15. Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43
`
`M-16. Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
`
`M-17. Cost of the Mediation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
`
`6
`
`RULES AND MEDIATION PROCEDURES
`
`American Arbitration Association
`
`

`

`INDEX NO. 654105/2019
`FILED: NEW YORK COUNTY CLERK 02/25/2020 01:47 AM
`NYSCEF DOC. NO. 36
`RECEIVED NYSCEF: 02/25/2020
`
`Commercial Arbitration Rules
`and Mediation Procedures
`
`(Including Procedures for Large, Complex Commercial Disputes)
`
`Important Notice
`
`These rules and any amendment of them shall apply in the form in effect at the
`time the administrative filing requirements are met for a demand for arbitration
`or submission agreement received by the AAA®. To ensure that you have the
`most current information, see our web site at www.adr.org.
`
`Introduction
`
`Each year, many millions of business transactions take place. Occasionally,
`disagreements develop over these business transactions. Many of these disputes
`are resolved by arbitration, the voluntary submission of a dispute to an impartial
`person or persons for final and binding determination. Arbitration has proven to be
`an effective way to resolve these disputes privately, promptly, and economically.
`
`The American Arbitration Association® (AAA), a not-for-profit, public service
`organization, offers a broad range of dispute resolution services to business
`executives, attorneys, individuals, trade associations, unions, management,
`consumers, families, communities, and all levels of government. Services are
`available through AAA headquarters in New York and through offices located in
`major cities throughout the United States. Hearings may be held at locations
`convenient for the parties and are not limited to cities with AAA offices. In
`addition, the AAA serves as a center for education and training, issues
`specialized publications, and conducts research on various forms of alternative
`dispute resolution.
`
`7
`
`Rules Amended and Effective October 1, 2013.
`
`COMMERCIAL RULES
`
`

`

`INDEX NO. 654105/2019
`FILED: NEW YORK COUNTY CLERK 02/25/2020 01:47 AM
`NYSCEF DOC. NO. 36
`RECEIVED NYSCEF: 02/25/2020
`Standard Arbitration Clause
`
`The parties can provide for arbitration of future disputes by inserting the
`following clause into their contracts:
`
`Any controversy or claim arising out of or relating to this contract, or the
`breach thereof, shall be settled by arbitration administered by the
`American Arbitration Association under its Commercial Arbitration Rules,
`and judgment on the award rendered by the arbitrator(s) may be entered
`in any court having jurisdiction thereof.
`
`Arbitration of existing disputes may be accomplished by use of the following:
`
`We, the undersigned parties, hereby agree to submit to arbitration
`administered by the American Arbitration Association under its
`Commercial Arbitration Rules the following Controversy: (describe briefly).
`We further agree that the above controversy be submitted to (one) (three)
`arbitrator(s). We further agree that we will faithfully observe this
`agreement and the rules, that we will abide by and perform any award
`rendered by the arbitrator(s), and that a judgment of any court having
`jurisdiction may be entered on the award.
`
`The services of the AAA are generally concluded with the transmittal of the
`award. Although there is voluntary compliance with the majority of awards,
`judgment on the award can be entered in a court having appropriate jurisdiction
`if necessary.
`
`Administrative Fees
`
`The AAA charges a filing fee based on the amount of the claim or counterclaim.
`This fee information, which is included with these rules, allows the parties to
`exercise control over their administrative fees. The fees cover AAA administrative
`services; they do not cover arbitrator compensation or expenses, if any, reporting
`services, or any post-award charges incurred by the parties in enforcing the award.
`
`Mediation
`
`Subject to the right of any party to opt out, in cases where a claim or
`counterclaim exceeds $75,000, the rules provide that the parties shall mediate
`their dispute upon the administration of the arbitration or at any time when the
`arbitration is pending. In mediation, the neutral mediator assists the parties in
`
`8
`
`RULES AND MEDIATION PROCEDURES
`
`American Arbitration Association
`
`

`

`INDEX NO. 654105/2019
`FILED: NEW YORK COUNTY CLERK 02/25/2020 01:47 AM
`NYSCEF DOC. NO. 36
`RECEIVED NYSCEF: 02/25/2020
`reaching a settlement but does not have the authority to make a binding
`decision or award. Mediation is administered by the AAA in accordance with its
`Commercial Mediation Procedures. There is no additional filing fee where parties
`to a pending arbitration attempt to mediate their dispute under the AAA’s auspices.
`
`Although these rules include a mediation procedure that will apply to many
`cases, parties may still want to incorporate mediation into their contractual dispute
`settlement process. Parties can do so by inserting the following mediation clause
`into their contract in conjunction with a standard arbitration provision:
`
`If a dispute arises out of or relates to this contract, or the breach thereof,
`and if the dispute cannot be settled through negotiation, the parties
`agree first to try in good faith to settle the dispute by mediation
`administered by the American Arbitration Association under its
`Commercial Mediation Procedures before resorting to arbitration,
`litigation, or some other dispute resolution procedure.
`
`If the parties want to use a mediator to resolve an existing dispute, they can en-
`ter into the following submission agreement:
`
`The parties hereby submit the following dispute to mediation
`administered by the American Arbitration Association under its
`Commercial Mediation Procedures. (The clause may also provide for the
`qualifications of the mediator(s), method of payment, locale of meetings,
`and any other item of concern to the parties.)
`
`Large, Complex Cases
`
`Unless the parties agree otherwise, the procedures for Large, Complex
`Commercial Disputes, which appear in this pamphlet, will be applied to all cases
`administered by the AAA under the Commercial Arbitration Rules in which the
`disclosed claim or counterclaim of any party is at least $500,000 exclusive of
`claimed interest, arbitration fees and costs. The key features of these procedures
`include:
`
` > A highly qualified, trained Roster of Neutrals;
`
` > A mandatory preliminary hearing with the arbitrators, which may be conducted by
`teleconference;
`
` > Broad arbitrator authority to order and control the exchange of information,
`including depositions;
`
` > A presumption that hearings will proceed on a consecutive or block basis.
`
`9
`
`Rules Amended and Effective October 1, 2013.
`
`COMMERCIAL RULES
`
`

`

`INDEX NO. 654105/2019
`FILED: NEW YORK COUNTY CLERK 02/25/2020 01:47 AM
`NYSCEF DOC. NO. 36
`RECEIVED NYSCEF: 02/25/2020
`Commercial Arbitration Rules
`
`R-1. Agreement of Parties*
`
`(a) The parties shall be deemed to have made these rules a part of their arbitration
`agreement whenever they have provided for arbitration by the American
`Arbitration Association (hereinafter AAA) under its Commercial Arbitration Rules
`or for arbitration by the AAA of a domestic commercial dispute without specifying
`particular rules. These rules and any amendment of them shall apply in the form
`in effect at the time the administrative requirements are met for a Demand for
`Arbitration or Submission Agreement received by the AAA. Any disputes
`regarding which AAA rules shall apply shall be decided by the AAA. The parties,
`by written agreement, may vary the procedures set forth in these rules. After
`appointment of the arbitrator, such modifications may be made only with the
`consent of the arbitrator.
`
`(b) Unless the parties or the AAA determines otherwise, the Expedited Procedures
`shall apply in any case in which no disclosed claim or counterclaim exceeds
`$75,000, exclusive of interest, attorneys’ fees, and arbitration fees and costs.
`
`Parties may also agree to use these procedures in larger cases. Unless the parties
`agree otherwise, these procedures will not apply in cases involving more than two
`parties. The Expedited Procedures shall be applied as described in Sections E-1
`through E-10 of these rules, in addition to any other portion of these rules that is
`not in conflict with the Expedited Procedures.
`
`(c) Unless the parties agree otherwise, the Procedures for Large, Complex
`Commercial Disputes shall apply to all cases in which the disclosed claim or
`counterclaim of any party is at least $500,000 or more, exclusive of claimed
`interest, attorneys’ fees, arbitration fees and costs. Parties may also agree to use
`the procedures in cases involving claims or counterclaims under $500,000, or in
`nonmonetary cases. The Procedures for Large, Complex Commercial Disputes
`shall be applied as described in Sections L-1 through L-3 of these rules, in
`addition to any other portion of these rules that is not in conflict with the
`Procedures for Large, Complex Commercial Disputes.
`
`(d) Parties may, by agreement, apply the Expedited Procedures, the Procedures for
`Large, Complex Commercial Disputes, or the Procedures for the Resolution of
`Disputes through Document Submission (Rule E-6) to any dispute.
`
`(e) All other cases shall be administered in accordance with Sections R-1 through R-58
`of these rules.
`
`* Beginning October 1, 2017, AAA will apply the Employment Fee Schedule to any dispute between an
`
`individual employee or an independent contractor (working or performing as an individual and not incorporated)
` and a business or organization and the dispute involves work or work-related claims, including any statutory
` claims and including work-related claims under independent contractor agreements. A dispute arising out of an
` employment plan will be administered under the AAA’s Employment Arbitration Rules and Mediation Procedures.
` A dispute arising out of a consumer arbitration agreement will be administered under the AAA’s Consumer
` Arbitration Rules.
`
`10
`
`RULES AND MEDIATION PROCEDURES
`
`American Arbitration Association
`
`

`

`INDEX NO. 654105/2019
`FILED: NEW YORK COUNTY CLERK 02/25/2020 01:47 AM
`NYSCEF DOC. NO. 36
`RECEIVED NYSCEF: 02/25/2020
`R-2. AAA and Delegation of Duties
`
`When parties agree to arbitrate under these rules, or when they provide for
`arbitration by the AAA and an arbitration is initiated under these rules, they
`thereby authorize the AAA to administer the arbitration. The authority and duties
`of the AAA are prescribed in the agreement of the parties and in these rules, and
`may be carried out through such of the AAA’s representatives as it may direct. The
`AAA may, in its discretion, assign the administration of an arbitration to any of its
`offices. Arbitrations administered under these rules shall only be administered by
`the AAA or by an individual or organization authorized by the AAA to do so.
`
`R-3. National Roster of Arbitrators
`
`The AAA shall establish and maintain a National Roster of Arbitrators (“National
`Roster”) and shall appoint arbitrators as provided in these rules. The term
`“arbitrator” in these rules refers to the arbitration panel, constituted for a
`particular case, whether composed of one or more arbitrators, or to an individual
`arbitrator, as the context requires.
`
`R-4. Filing Requirements
`
`(a) Arbitration under an arbitration provision in a contract shall be initiated by the
`initiating party (“claimant”) filing with the AAA a Demand for Arbitration, the
`administrative filing fee, and a copy of the applicable arbitration agreement from
`the parties’ contract which provides for arbitration.
`
`(b) Arbitration pursuant to a court order shall be initiated by the initiating party filing
`with the AAA a Demand for Arbitration, the administrative filing fee, and a copy of
`any applicable arbitration agreement from the parties’ contract which provides for
`arbitration.
`
`i. The filing party shall include a copy of the court order.
`
`ii. The filing fee must be paid before a matter is considered properly filed. If the
`court order directs that a specific party is responsible for the filing fee, it is
`the responsibility of the filing party to either make such payment to the AAA
`and seek reimbursement as directed in the court order or to make other such
`arrangements so that the filing fee is submitted to the AAA with the Demand.
`
`iii. The party filing the Demand with the AAA is the claimant and the opposing
`party is the respondent regardless of which party initiated the court action.
`Parties may request that the arbitrator alter the order of proceedings if
`necessary pursuant to R-32.
`
`(c) It is the responsibility of the filing party to ensure that any conditions precedent
`to the filing of a case are met prior to filing for an arbitration, as well as any time
`requirements associated with the filing. Any dispute regarding whether a condition
`precedent has been met may be raised to the arbitrator for determination.
`
`11
`
`Rules Amended and Effective October 1, 2013.
`
`COMMERCIAL RULES
`
`

`

`INDEX NO. 654105/2019
`FILED: NEW YORK COUNTY CLERK 02/25/2020 01:47 AM
`NYSCEF DOC. NO. 36
`RECEIVED NYSCEF: 02/25/2020
`
`(d) Parties to any existing dispute who have not previously agreed to use these rules
`may commence an arbitration under these rules by filing a written submission
`agreement and the administrative filing fee. To the extent that the parties’
`submission agreement contains any variances from these rules, such variances
`should be clearly stated in the Submission Agreement.
`
`(e) Information to be included with any arbitration filing includes:
`
`i.
`
`the name of each party;
`
`ii. the address for each party, including telephone and fax numbers and e-mail
`addresses;
`
`iii. if applicable, the names, addresses, telephone and fax numbers, and e-mail
`addresses of any known representative for each party;
`
`iv. a statement setting forth the nature of the claim including the relief sought
`and the amount involved; and
`
`v.
`
`the locale requested if the arbitration agreement does not specify one.
`
`(f) The initiating party may file or submit a dispute to the AAA in the following
`manner:
`
`i.
`
`through AAA WebFile, located at www.adr.org; or
`
`ii. by filing the complete Demand or Submission with any AAA office, regardless
`of the intended locale of hearing.
`
`(g) The filing party shall simultaneously provide a copy of the Demand and any
`supporting documents to the opposing party.
`
`(h) The AAA shall provide notice to the parties (or their representatives if so named)
`of the receipt of a Demand or Submission when the administrative filing
`requirements have been satisfied. The date on which the filing requirements are
`satisfied shall establish the date of filing the dispute for administration. However,
`all disputes in connection with the AAA’s determination of the date of filing may
`be decided by the arbitrator.
`
`(i)
`
`If the filing does not satisfy the filing requirements set forth above, the AAA shall
`acknowledge to all named parties receipt of the incomplete filing and inform the
`parties of the filing deficiencies. If the deficiencies are not cured by the date
`specified by the AAA, the filing may be returned to the initiating party.
`
`R-5. Answers and Counterclaims
`
`(a) A respondent may file an answering statement with the AAA within 14 calendar
`days after notice of the filing of the Demand is sent by the AAA. The respondent
`shall, at the time of any such filing, send a copy of any answering statement to
`the claimant and to all other parties to the arbitration. If no answering statement
`is filed within the stated time, the respondent will be deemed to deny the claim.
`Failure to file an answering statement shall not operate to delay the arbitration.
`
`12
`
`RULES AND MEDIATION PROCEDURES
`
`American Arbitration Association
`
`

`

`INDEX NO. 654105/2019
`FILED: NEW YORK COUNTY CLERK 02/25/2020 01:47 AM
`NYSCEF DOC. NO. 36
`RECEIVED NYSCEF: 02/25/2020
`
`(b) A respondent may file a counterclaim at any time after notice of the filing of the
`Demand is sent by the AAA, subject to the limitations set forth

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