Actually a question about arbitration - or eventually small claims

[seeeker]

Depends on which organization is used for the arbitration, but typically, the petitioner files a demand in arbitration and serves it on the other side.



No. An arbitrator gets appointed by the organization that conducts the arbitration in accordance with that organization's rules..



No.



Yes. All of it matters.

Can you quote the exact language of the arbitration provision in the contract? The one sentence you quoted is only helpful in that it says arbitration is optional.



Out of curiosity, why? If your dispute is small enough that small claims court is an option, that will almost certainly be a better and less expensive option for you (although it will have its own set of potential problems). How much money is at issue, by the way?

Thanks for the reply.

"Out of curiosity, why?".... I assumed arbitration was a less formal, less time consuming, less "invasive" process to reach a solution? This way I could make my case remotely or via tele-conference, instead of having to stand in front of a judge and a room full of people. But I know nothing about any of this so is arbitration actually more complicated? Small claims was my first thought, is that a better option?

I can't upload an image of the passages so I'll have to type. These are the relevant passages:

"10. It is agreed by the parties as mandatory that this agreement shall be governed by the internal laws of the state of Texas without regard to the principles of conflicts of law. Any dispute arising out of or relating to this agreement shall be brought in the courts or record of the state of Texas in Dallas County or the court of the United States. If any party does not have a registered agent to accept service of process in Texas or is not otherwise subject to service after reasonable attempts, then such party agrees to accept service of process by US Mail."

"13. Motor carrier neutral arbitration program: The motor carrier's neutral arbitration program has been designed to give neither party any special advantage. If a dispute arises between the carrier and the shipper arbitration may be a mutually beneficial alternative to help resolve the dispute. Section 49 U.S.C. Sections 375.211 provides that a mover must have a program in place to provide shipper with an arbitration alternative. Arbitration is optional and not required by law. Summary of the arbitration process: Arbitration is an alternative to courtroom litigation, it provides each party to the dispute to present their cases and allows a neutral third-party arbitrator to make decisions as to the merit of each sides case. Arbitration subject to this agreement shall be conducted via written submission and, subject to the arbitrator's discretion, through telephonic appearance. After the initial filing fees have been paid, and the arbitrator selected, the initiating party or claimant must submit a written brief summarizing their legal position and factual claims. All supporting documentation must be included with the initial arbitration brief. Copies of all documents must be submitted to all parties involved in the arbitration. Upon receipt of the claimant's arbitration brief and supporting documentation, the responding party will have 30 days to file their responsive arbitration brief and supporting documentation. Further deadlines and time tables are subject to the arbitrator's discretion. Legal effects; if the arbitration alternative is chosen, then any decision made by the arbitrator may be binding. Additionally, an arbitration decision may not be appealed in a court of law. All parties agree that the arbitrators decision will be based exclusively on the governing United States Federal law without regard to conflicting state laws or regulations. Applicable costs each party is responsible for their own cost associated with arbitration. A benefit to the arbitration alternative may be that it is less expensive than traditional litigation. Each party is responsible for 50% of the cost associated with securing the arbitrator and 100% of their own expenses. Including but not limited to attorneys fees."

 

[Zigner]

https://www.fmcsa.dot.gov/protect-your-move/arbitration-program-brochure

 

[zddoodah]

"Out of curiosity, why?".... I assumed arbitration was a less formal, less time consuming, less "invasive" process to reach a solution? This way I could make my case remotely or via tele-conference, instead of having to stand in front of a judge and a room full of people. But I know nothing about any of this so is arbitration actually more complicated? Small claims was my first thought, is that a better option?

Let me start by saying that I'm not in any of the states you mentioned, so I can't give you any first-hand information about small claims court in those states (except that I recall reading that Texas allows lawyers in small claims court). With that said, small claims court is designed for small, simple matters and should be streamlined and lacking in complexity. Arbitration is also ostensibly designed to be more simple and less expensive than litigation, but that comparison normally is made with respect to "regular" civil court, not small claims court. Also, in my experience, any benefits of arbitration are illusory, and this pertains to the country's leading commercial arbitration company. I cannot think of a single arbitration where the arbitrator didn't make at least one ruling that was arbitrary and capricious and where it didn't cost more than litigation would have cost. With courts, you may have the ability to appeal,* but not so with arbitration. There are very few bases on which an arbitration award can be overturned. Your guess is as good as mine about the availability of Zoom or similar hearings in any of the venues that have been mentioned.

* - In some states, an unsuccessful small claims plaintiff has no right of appeal.

Motor carrier neutral arbitration program

Google this term and read some of the search results. It sounds like this is something set up by the federal Department of Transportation, so my comments above might not apply.

 

[quincy]

Zigner already provided a link to the Federal Motor Carrier Safety Administration and access to an arbitration program brochure.

Here is an additional link:
https://www.fmcsa.dot.gov/consumer-protection/household-goods/protect-your-move

The arbitration hearing would be in Texas. Attorneys are permitted in small claims actions in Texas but seeker does not reside in Texas.