The Construction Industry Arbitration Rules and Mediation Procedures are commonly utilized in the arbitration of construction disputes.  Effective July 1, 2015, the American Arbitration Association (AAA) amended its Construction Industry Arbitration Rules and Mediation Procedures, resulting in some significant changes to the manner in which construction mediation and arbitration disputes are conducted.  The overall goal of these amendments is to improve the efficiency of the arbitration process, thereby maintaining its viability as an alternative to litigation.  Some of the major revisions to the rules are described below:

Application for emergency relief (Rule R-39).  A party may petition the AAA to arrange for emergency relief from an arbitrator and an emergency arbitrator will be appointed within one business day of such request.  This amendment also permits an expedited evaluation to determine whether emergency relief is necessary to prevent irreparable damage.  Such a request does not pose a violation of the agreement to arbitrate.

Preliminary Hearing (Rule R-23).  Parties are no longer obligated to conduct a preliminary hearing to review a required list of topics.  Under the new R-23, the decision to hold a preliminary hearing, and the timing of a hearing if one occurs, are to be determined at the discretion of the parties taking into consideration the nature of the arbitration.

Consolidation or Joinder (Rule R-7).  To address complex questions of whether to join additional parties or consolidate individual cases, the new rule provides filing and time requirements to enhance the efficiency of the process.  For example, consolidation and joinder requests must be submitted within the first 90 days of the hearing and must clearly specify the justifications for the request.

Requirement for Mediation (Rule R-10).  While mediation can be an effective tool for resolving disputes in lieu of arbitration, it can unreasonably delay the proceedings when it is a prerequisite to arbitration.  Thus, the new rule requires that all cases with claims exceeding $100,000 will be automatically referred to mediation, with each party retaining the right to opt out of mediation. In addition, the mediation proceedings may occur simultaneously with arbitration.

If you are a party to an arbitration proceeding, it is important to get the advice of a knowledgeable attorney .  Contact Shane Coons at 949-333-0900 or visit www.ShaneCoonsLaw.com to learn more about his practice.