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Elance arbitration and rules for online arbitrators

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guanxi

Junior Member
What is the name of your state (only U.S. law)? Texas

I recently had a dispute with an Elance contractor who failed to complete a software project. After weeks of arguing with the contractor from India I was told by Elance support that my only option was to pay for arbitration from a company called net-arb. I don't have anything good to say about net-arb, and after doing more research on the web I'm beginning to smell something very fishy about that company.

I am not a lawyer, but I am very familiar with the small claims process. I have also been through mediation which I thought was a good experience in spite of not winning all that I was seeking. I call it a good experience because it was fair. So when it came to this online arbitration I was expecting to be treated fairly even though I did not win a single penny.

I don't think it would make sense to explain my entire dispute in detail because it is too involved and both sides have valid points. In brief, this is what it boils down to. I had a fixed-price project for $1500. The contractor ran into problems and asked me to escrow an additional $500. I agreed to provide that if all the original written requirements were met. In the end, those requirements were not met so I submitted an adjustment to the second escrowed amount. And of course the contractor disagreed. Thus the dispute.

At this point I am just trying to understand what my options are. The arbitration agreement does state, "The parties expressly waive their right to a trial in a court of law and forfeit any right to appeal the decision of the arbitrator for any reason whatsoever." So I guess that means if the arbitrator doesn't like my football team that is just too bad for me. I will dispute this $500 Elance charge with the credit card company, but the so-called arbitrator took 2 months to render a decision and now I'm past the normal time limit for credit disputes.

Are arbitrators required to be licensed?
Are there any rules (federal or state) for online arbitrators?
For example, are they required to disclose who they are?

The entire net-arb arbitration process is done by email, and when the final decision is made that email communication is turned off. You cannot see the man behind the curtain, and you are not afforded the opportunity to point out any errors in the arbitrators judgment. So far the company (net-arb) has not responded to my requests for the full name or phone number of their arbitrator they call Chris. The only thing I know is that he a contractor.

The erroneous conclusions presented by the arbitrator probably come from his lack of technical knowledge. Combined with the lack of full disclosure this process just does not pass the smell test.
 
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