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NevadaArbitration Rules & Procedures

by: Brent Borneman
3rd year law student Widener University School of Law; graduating in May/2005 Graduated in May/2000 from Univ. of Maryland with a B.A. in Criminal Justice & Criminology. Mr. Borneman's email address is brentborneman@hotmail.com

 

INTRODUCTION

 

In Nevada, mandatory arbitration programs must be used before traditional legal actions can be filed in the district courts of the state.  The Nevada Supreme Court rules for the mandatory small civil case arbitration program are called the Court Annexed Arbitration Program (CAAP).  These rules are set forth in the Nevada Supreme Court Rules (S.C.R) under the heading: Nevada Arbitration Rules (N.A.R.).  The CAAP rules are found in Rules 1 through 24.  The Nevada Revised Statutes (NRS) are the current codified laws of the State of Nevada and Chapter 38 includes the Uniform Arbitration Act. 

 

The statutory basis for the mandatory arbitration of smaller civil (monetary damages) actions in Nevada is found at NRS 38.250-NRS 38.259. These statutes require the non-binding arbitration of most claims for money damages if the sum in dispute is less than $40,000.  NRS 38.253 directs the Nevada Supreme Court to adopt the rules necessary to implement the arbitration program.  Alternative Dispute Resolution, LLC. 

 

The statutory sections also allow parties to a dispute, which would normally fall under the mandatory program, to first submit the matter to one of several other forms of authorized alternative dispute resolution. NRS 38.250(1)(a).  The statute specifically authorizes a voluntary settlement conference, mediation by agreement, or a binding short trial later.  If the alternative elected by the parties results in a binding resolution of the dispute, obviously the matter is over. If no binding resolution is achieved, the matter goes back into the mandatory non-binding arbitration program.  It is important that the best alternative dispute resolution process be chosen in each case.  The failure to choose well will result in greater expense and delay for both parties. Alternative Dispute Resolution, LLC. 

 

The Court Annexed Arbitration Program is a mandatory, non-binding arbitration program for certain civil cases commenced in judicial districts having a population of at least 100,000.  N.A.R. 1.  Judicial districts having a lesser population may adopt local rules implementing all or part of the program.  N.A.R. 1.  In Nevada that includes only the Second Judicial District Court, which is Washoe County, including but limited to Reno, and the Eighth Judicial District Court, which is Clark County, including but not limited to Las Vegas.  NRS 38.255(2).  Other judicial districts can voluntarily participate in the program. NRS 38.255; N.A.R. 1.  Presently, the Ninth Judicial District Court (Douglas County, including but not limited to Minden/Gardnerville) has instituted a voluntary program. In other words, any state district court dispute arising in Nevada, but outside these jurisdictions, is not subject to the mandatory small case arbitration program at all.  Alternative Dispute Resolution, LLC.    The following provides a detailed description and explanation of the Court Annexed Arbitration Program (CAAP) found in the Nevada Arbitration Rules (N.A.R.).

 

COURT ANNEXED ARBITRATION PROGRAM (CAAP)

 

The purpose of the CAAP is to provide a simplified procedure for obtaining a prompt and equitable resolution of certain civil matters.  N.A.R. 2(A).  Arbitration hearings are intended to be informal and expeditious.  N.A.R. 2(D).  CAAP is a mandatory, non-binding arbitration program for civil cases that have a probable jury award value not exceeding $40,000 per plaintiff, excluding interest and costs and regardless of comparative liability.  N.A.R. 3(A).  However, many actions are excluded from CAAP, including class actions, appeals from courts of limited jurisdiction, probate actions, divorce and other domestic relations actions, actions seeking judicial review of administrative decisions, actions concerning title to real estate, actions for declaratory relief, actions presenting significant issues of public policy, actions in which the parties have agreed in writing to submit the controversy to arbitration or other alternative dispute resolution method prior to the accrual of the cause of action, and actions seeking equitable or extraordinary relief.  N.A.R. 3(A).  If all parties agree and the district judge to whom the case is assigned approves, any civil case, regardless of monetary value, the amount in controversy or relief sought, may be submitted to CAAP.  N.A.R. 3(B). 

 

CAAP is required in judicial districts with a population exceeding 100,000.  Judicial districts with populations less than 100,000 may adopt local rules implementing all or part of the program.  N.A.R. 1.  Each district court may appoint an arbitration commissioner to serve the courts.  In districts with multiple judges, a majority of all the judges in that district must concur on the appointment.  The arbitration commissioner may be a discovery commissioner, other special master, or any qualified and licensed Nevada attorney.  N.A.R. 2(C).  Although the arbitration rules do not address every issue that may arise, the intent of the rules is to give considerable discretion to the arbitrator, the arbitration commissioner, and the district judge.

 

While a case is in CAAP, parties may stipulate, with the approval of the assigned district judge, to a settlement conference, mediation proceeding, or other settlement techniques conducted by a different district judge, senior judge or special master.  This can also occur through a court order.  Any settlement technique conducted may not extend the timetable for resolution of the case by more than thirty days.  N.A.R. 3(C).  Parties in the program may agree at anytime to be bound by any arbitration ruling or award.  However, the parties may confirm, vacate or modify the decision of the arbitrator.  N.A.R. 3(D). 

 

A case is placed in CAAP after it has been filed in the district court and remains under the jurisdiction of that court for all phases of the proceedings, including the arbitration.  N.A.R. 4(A).  When the district court has jurisdiction over a case, it also has the authority to act on or interpret these rules.  N.A.R. 4(B).  Before a case has been ordered or submitted to CAAP, the Nevada Rules of Civil Procedure apply. They also apply when the case has been removed from the program and after a request for a trial de novo is filed.  N.A.R. 4(C).  Once a case is submitted or ordered to the program, all parties in the action are parties to the arbitration unless dismissed by the district judge to whom the case is assigned.  N.A.R. 4(F). 

 

If a party believes that a case should not be in CAAP, that party must file with the arbitration commissioner a request to exempt the case from the program and serve the request on any party who has appeared in the action.  When a party claims an exemption from CAAP on the grounds in Rule 3(A) other than the amount in controversy or the presentation of significant issues of public policy, that party is not required to file a request for exemption if the initial pleading specifically designates the category of claimed exemption in the caption.  The request for exemption must be filed within twenty days after the defendant files the answer.  The party requesting the exemption must certify that the case is included in one of the categories of exempt cases listed in Rule 3.  The request for exemption must also include a summary of facts that supports the party’s contentions.  N.A.R. 5(A).  Both parties may file a joint request for exemption.  N.A.R. 5(C).  If one party opposes the exemption request, that party must file an opposition memorandum to the arbitration commissioner and serve the other party within five days of service of the request for exemption.  N.A.R. 5(B).  For good cause shown, an appropriate case may be removed from the program upon the filing of an untimely request for exemption.  However, this filing may subject the requesting party to sanctions by the arbitration commissioner.  N.A.R. 5(A). 

 

When requests for exemption from arbitration are filed, the arbitration commissioner reviews the contentions, facts, and evidence to determine whether an exemption is warranted.  Sometimes the arbitration commissioner requires the submitting party to provide additional facts to support its contentions.  Any objections to the commissioner’s decision must be filed with the commissioner who then notifies the district judge to whom the case is assigned.  Objections must be filed within five days of service of the commissioner’s decision and must be served to the other party.  N.A.R. 5(D).  The district judge makes all final determinations regarding whether or not the case is eligible for arbitration.  The district judge’s decision is final and is not reviewable.  N.A.R. 5(E). 

 

ARBITRATOR

 

            The arbitration commissioner creates and maintains a panel of arbitrators consisting of attorneys licensed to practice law in Nevada and a separate panel of non-attorney arbitrators.  N.A.R. 7(A).  The arbitrator is chosen by the parties from a list of five arbitrators selected randomly from the panel of arbitrators.  N.A.R. 6(C).  Parties may also stipulate to use a private arbitrator or use arbitrators who are not on the panel of arbitrators assigned to the program.  These stipulations must be filed with the arbitration commissioner no later than the date set for the return of the arbitration selection list.  The stipulation must include an affidavit that is signed and verified by the arbitrator expressing his willingness to comply with the timetables set forth in CAAP.  If a party fails to file a timely stipulation, the party may not be precluded from using a private arbitrator, but the party may be subject to sanctions by the arbitration commissioner.  N.A.R. 6(A).  All fees or expenses related to the use of a private arbitrator are the responsibility of the parties.  N.A.R. 6(B). 

           

Parties have ten days to file with the arbitration commissioner either a private arbitrator stipulation and affidavit or each party must file the selection list with no more than two names stricken.  N.A.R. 6(C)(1).  When both parties respond, the arbitration commissioner appoints an arbitrator from one of the names not stricken.  N.A.R. 6(C)(2).  If only one party responds, the arbitration commissioner appoints an arbitrator not stricken from that party’s list.  N.A.R. 6(C)(3).  If neither party responds, the arbitrator appoints any one of the five arbitrators on the list.  N.A.R. 6(C)(4).  When there are more than two adverse parties, the arbitration commissioner adds two additional arbitrators to the list and follows the same process described in Rule 6(C).  N.A.R. 6(c)(5).  If additional parties come into the action after the arbitrator is selected, the new parties have ten days to file and serve an objection to the current arbitrator in writing, stating specific grounds, to the arbitration commissioner who reviews the objections and renders a decision.  This decision can be appealed to the district judge assigned to the case within ten days of the date of service of the arbitration commissioner’s decision.  N.A.R. 6(E).  If for any reason the arbitrator selection process fails, the arbitration commissioner repeats the process set forth in Rule 6(C).  N.A.R. 6(F). 

 

Applications for appointment to the panel of arbitrators are made to the Nevada Supreme Court.  The Nevada Supreme Court may refer an application to the Nevada State Bar for review and investigation into the applicant’s qualifications and fitness to serve as an arbitrator.  The investigation includes verification of the applicant’s educational background, employment history, professional licensure and any related disciplinary proceedings, and criminal history.  Within ninety days from the date of the referral, the State Bar transmits to the Nevada Supreme Court a certificate concerning the applicant’s qualifications and fitness.  N.A.R. 7(A).  The certificate includes the following:  (1) whether the applicant meets the minimum experience requirements; (2) whether the applicant has been subject to disciplinary proceedings involving any license, and if so, the nature and result of those proceedings; (3) whether the applicant has a criminal history, and if so, the details of that history; (4) whether the applicant has ever been named as a defendant in any proceeding involving fraud, misappropriation of funds, misrepresentation or breach of fiduciary duty, and if so, the nature and resolution of such proceedings; and (5) whether the State Bar’s investigation revealed any other matter pertinent to the applicant’s qualifications or fitness, and if so, the details of the matter and how it relates to the applicant’s potential service as an arbitrator.  N.A.R. 7(A)(1)-(5). 

 

Attorney arbitrators must be licensed to practice law in Nevada and have practiced law a minimum of eight years in any jurisdiction.  Non-attorney arbitrators must be listed on the roster of approved arbitrators of the American Arbitration Association or a similar, reputable arbitration service or have a Juris Doctorate degree and eight years of work experience in their areas of expertise.  N.A.R. 7(B).  Arbitrators are required to complete an orientation and training program in conjunction with their selection to the panel and attend other additional training sessions or classes that the State Bar requires.  N.A.R. 7(C).  Arbitrators also must be sworn or affirmed to uphold the rules of the program and the laws of the State of Nevada by any person authorized to administer the official oath.  N.A.R. 7(D).  Arbitrators are held to the same rules as judges in the Nevada Code of Judicial Conduct concerning disqualifications and withdrawals from a case.  N.A.R. 7(E). 

 

The arbitrator’s authorities and powers include, but are not limited to, administering oaths or affirmations to witnesses and relaxing all applicable rules of evidence and procedure to effectuate a speedy and economical resolution of the case without sacrificing a party’s right to a full and fair hearing on the merits.  N.A.R. 8(A)(1)-(2).  If a party challenges the authority or action of an arbitrator, that challenge must be filed with the arbitration commissioner and served upon the other parties and the arbitrator within ten days of the date of the challenged decision or action.  Any opposition to the challenge must be filed with the arbitration commissioner and served upon the other parties within five days of service of the challenge. There is no official amount of time the arbitration commissioner shall rule on the issue.  Judicial review of the ruling of the arbitration commissioner may be obtained by filing a petition for review with the arbitration commissioner within ten days of the date of service of the arbitration commissioner’s ruling.  The arbitration commissioner must notify the district judge to whom the case is assigned of the petition and may enter an appropriate stay pending review by the district judge.  The district judge has the non-reviewable power to uphold, overturn or modify the ruling of the arbitration commissioner, including the power to stay any proceeding.  N.A.R. 8(B). 

 

PRE-HEARING

 

            Once an arbitrator is appointed to a case, it is the arbitrator’s responsibility to set the time and date of the hearing.  All arbitrations must be completed within six months from the day of appointment, including the filing of all awards.  N.A.R. 12(A).  However, there are exceptions to this general rule.  The arbitrator, for good cause, can continue the hearing to a later date.  A party must file a written request to the arbitrator showing good cause.  The arbitrator cannot grant a request for a continuance that would extend the time period to nine months without written permission from the arbitration commissioner.  This request by the arbitrator must be made in writing to the arbitration commissioner.  The arbitration commissioner may grant this request if there are unusual circumstances.  Overall, an arbitration hearing must take place within one year from the date in which the arbitrator was appointed.  N.A.R. 12(B). 

           

Arbitration hearings held in violation of Rule 12 may subject the parties, their counsel, and even the arbitrator to sanctions.  The sanctions may include loss or reduction of the arbitrator’s fee, temporary suspension of the arbitrator from the panel, and monetary sanctions assessed against the parties or their counsel.  N.A.R. 12(B)(1).  Moreover, if the arbitration hearing does not take place within the one year time period, the case may be subject to dismissal or entry of default.  N.A.R. 12(B)(2). 

           

Within thirty days after the appointment of the arbitrator, the parties must meet with the arbitrator to formulate a discovery plan.  This includes exchanging documents and identifying witnesses.  N.A.R. 11.  The parties must follow the same mandatory pre-trial discovery requirements in the Nevada Rules of Civil Procedure.  N.R.C.P. 16.1.  This conference may be held in person or by telephone at the discretion of the arbitrator.  The arbitrator also has discretion as to the extent of discovery allowed, if at all.  The arbitrator must make every effort to ensure that any discovery is neither costly nor burdensome.  Although the types of discovery are the same as those permitted by the Nevada Rules of Civil Procedure, the arbitrator may modify the requirements to save time and expense.  N.A.R. 11. 

           

At least ten days prior to the date of the hearing, each party must file with the arbitrator and serve to the other parties a pre-hearing statement.  A pre-hearing statement consists of a final list of witnesses whom the party intends to call at the hearing and a list of exhibits and documentary evidence that are anticipated to be introduced.  The witness list must contain a brief description of the matters about which each witness is intended to testify.  All exhibits and documentary evidence must be made available for inspection and copying by all other parties.  N.A.R. 13(A).  Ten days prior to the hearing, each party must also furnish copies of any pleadings and other documents contained in the court file, which that party deems as relevant.  N.AR. 13(C).  The arbitrator returns all exhibits after the award is made.  N.A.R. 16(F).  Any party that fails to comply with Rule 13 or any discovery order may not present a witness or exhibit at the arbitration hearing if it was not previously made available to the other party.  N.A.R. 13(B). 

 

ARBITRATION HEARING

 

            During the course of the arbitration proceedings, no documents other than the motions permitted in Rule 4 may be filed with the district court.  All stipulations, motions, and other documents relevant to the arbitration must be filed with the arbitrator.  N.A.R. 9.  Communications directly with the arbitrator regarding the merits of the case are also restricted.  Neither counsel nor any parties may communicate directly with the arbitrator without the presence or reasonable notice to all other parties.  N.A.R. 10. 

           

The arbitrator has complete discretion over the conduct of the hearing.  N.A.R. 14(A).  The arbitration hearing can be formal, similar to a traditional courtroom trial or, as more commonly conducted, informal, where the rules of litigation such as discovery and evidence are more relaxed.  As discussed above, the goal of an arbitration hearing is to settle the dispute as quickly and cost-effectively as possible.  Arbitration hearings very rarely last longer than one day.  Alternative Dispute Resolution, LLC. 

           

Sometimes a party is absent at the arbitration.  When this occurs, an arbitration may proceed if, after due notice, the party fails to be present or fails to file for and obtain a continuance.  The party that is present at the hearing must submit evidence that the arbitrator requires for making the award.  The arbitrator may offer the absent party an opportunity to appear at a later hearing, but only if the arbitrator deems the hearing appropriate due to the circumstances.  N.A.R. 15. 

 

AWARDS

 

            The award determined by the arbitrator must follow a certain framework.  First, it must be in writing and signed by the arbitrator.  N.A.R. 16(A).  The maximum award that can be rendered by the arbitrator is $40,000, excluding attorney’s fees, interest, and costs.  The arbitrator must determine the award based on all the issues raised in the pleadings, including comparative negligence, damages, and costs.  N.A.R. 16(B).  The arbitrator is not required to provide a written opinion detailing the findings of fact and conclusions of law or the reasons for his or her decision.  N.A.R. 16(C).  Attorney’s fees awarded by the arbitrator may not exceed $3,000 unless the compensation of the attorney was agreed upon between the parties allowing for a greater reward.  N.A.R. 16(E). 

           

The arbitrator must file the award with the arbitration commissioner within seven days after the conclusion of the arbitration hearing or thirty days after receiving the final authorized memoranda of counsel.  The arbitration commissioner must also serve copies of the award to the attorneys or any unrepresented parties.  The arbitrator must apply for any extension of these time periods to the arbitration commissioner.  N.A.R. 17(A).  The prevailing party has the responsibility of filing applications for any attorney’s fees, costs, and interest with the arbitrator and serving the other party with this request within five days after service of the award.  A prevailing party’s failure to make a timely application is the equivalent of a jurisdictional waiver of any right to fees, costs or interest.  The responding party must file its response with the arbitrator and serve the other party within five days after service of the application.  All rulings on these applications must be filed with the arbitration commissioner by the arbitrator and served on all parties within five days after the deadline for responses to the applications.  N.A.R. 17(B). 

 

The arbitrator cannot file an amended award.  However, the arbitrator may, for good cause, file with the arbitration commissioner and serve on all parties a request to amend the award.  This request must be filed within twenty days from the date of service of the original award.  N.A.R. 17(C).  If an arbitrator decides that an amended award is warranted and the arbitration commissioner accepts the arbitrator’s request, the arbitration commissioner will issue, file, and serve the amended award.  N.A.R. 17 (C)(1). 

 

The judgment of the award cannot be final until thirty days after service of the award passes and no party has filed a written request for a trial de novo (which will be discussed in the next section).  After the thirty days expire, the prevailing party must submit to the arbitration commissioner a form of final judgment in accordance with the arbitration award, including any grant of fees, costs, and interest.  Judgment then must be submitted for signature to the district judge to whom the case was assigned.  Finally, the judgment must then be filed with the clerk.  N.A.R. 19(A).  Arbitration judgments on awards have the same force and effect as a final judgment of the court in a civil action.  However, the arbitration judgment may not be appealed.  N.A.R. 19(B).  Final judgments in arbitrations cannot be amended and parties may not be relieved of the judgment.  If a party believes that there has been a clerical mistake or an oversight or omission, that party may file a motion at any time on its own initiative to have that mistake corrected.  N.A.R 19(C).

 

TRIAL DE NOVO

 

            All parties have the right to file for trial de novo unless they have agreed at anytime to be bound by the arbitration ruling or award.  N.A.R. 3(D).  When a party files for trial de novo, the case proceeds in the district court originally assigned to the case and includes all parties that appeared in the arbitration unless otherwise stipulated.  N.A.R. 18(D).  Cases requiring a trial de novo will not be given preference on the trial calendar of the district court simply because those cases were subject to arbitration proceedings.  Trials de novo will be processed in the ordinary course of the district court’s business.  N.A.R. 21. 

 

Any party may file for trial de novo within thirty days after the arbitration award is served.  N.A.R. 18(A).  The thirty-day filing requirement is jurisdictional and untimely requests for trial de novo will not be considered by the district court.  N.A.R. 18(B).  The party must file with the clerk of court and serve on the other parties and the arbitration commissioner a written request for trial de novo.  The requesting party must also certify that all of its arbitrator fees and costs have been paid or will be paid within thirty days.  N.A.R. 18(A).  Any party that fails to pay the arbitrator’s bill is deemed to have waived the right to trial de novo.  However, if a party objects to the arbitrator’s bill and has filed a timely objection with the arbitration commissioner, that party has ten days from the date of service of the arbitration commissioner’s decision to pay any remaining balance owed on the arbitrator’s bill.  Objections do not toll the thirty-day filing requirement.  N.A.R. 18(C). 

 

At a trial de novo, the arbitration award is admitted as evidence and all discovery obtained during the course of the arbitration proceeding is admissible.  N.A.R. 20(A).  The admissibility is subject to the applicable rules of the Nevada Rules of Civil Procedure and the Nevada Rules of Evidence.  (See Chapters 47 to 56 on the linked page for the Nevada Rules of Evidence)  The prevailing party at trial de novo is entitled to all recoverable fees, costs, and interest pursuant to Rule 68 of the Nevada Rules of Civil Procedure.  N.A.R. 20(B).  Besides any award of fees and costs, a party is entitled to a separate award of attorney’s fees and costs that may not exceed $10,000.  First, where an arbitration award is $20,000 or less, and the party requesting the trial de novo fails to obtain a judgment that exceeds that arbitration award by at least twenty percent, the non-requesting party is entitled to its attorney’s fees and costs associated with the proceedings following the request for trial de novo. On the other hand, if the requesting party fails to obtain a judgment that reduces by at least twenty percent the amount for which that party is liable under the arbitration award, the non-requesting party is entitled to its attorney’s fees and costs associated with the proceedings following the request for trial de novo.  N.A.R. 20(B)(2)(a).  Second, where an arbitration award is more than $20,000, and the party requesting the trial de novo fails to obtain a judgment that exceeds the arbitration award by at least ten percent of the award, the non-requesting party is entitled to its attorney’s fees and costs associated with the proceedings following the request for trial de novo. On the other hand, if the requesting party fails to obtain a judgment that reduces by at least ten percent the amount for which that party is liable under the arbitration award, the non-requesting party is entitled to its attorney’s fees and costs associated with the proceedings following the request for trial de novo.  N.A.R. 20(B)(2)(b).  When comparing the arbitration award and the judgment, the court may not include costs, attorney’s fees, and interest with respect to the amount of the award or judgment.  If multiple parties are involved in the action, the court must consider each party’s respective award and judgment in making its comparison between the award and judgment.  N.A.R. 20(B)(3). 

 

SANCTIONS

 

Parties and attorneys may be sanctioned during the arbitration proceedings or during the proceedings in the trial de novo.  First, the failure of a party or attorney to either prosecute or defend a case in good faith during the arbitration proceeding constitutes a waiver of the right to a trial de novo.  N.A.R. 22(A).  Second, if during the proceedings of the trial de novo, the district court judge determines that any party or attorney engaged in conduct designed to obstruct, delay or otherwise adversely affect the arbitration proceedings, he or she may impose any sanction authorized under Rules 11 and 37 of the Nevada Rules of Civil Procedure.  N.A.R. 22(B). 

 

COSTS

 

            Any party may cause the arbitration hearing to be reported at its own expense.  N.A.R. 14(B).  Arbitrators are entitled to recover costs that do not exceed $250.  The costs must be reasonably incurred in processing and deciding an action.  The following are included as costs to the arbitrator:  (1) reasonable costs for telecopies; (2) reasonable costs for photocopies; (3) reasonable costs for long distance telephone calls; (4) reasonable costs for postage; (5) reasonable costs for travel and lodging; and (6) reasonable costs for secretarial services.  N.A.R. 23(A).  In order to recover costs, the arbitrator must submit to the parties an itemized bill of costs within fifteen days of the date that the arbitrator serves the award in an action; within fifteen days of notice of removal of the case from CAAP by resolution or exemption; or within fifteen days of notice of change of arbitrator, whichever is the earliest.  N.A.R. 23(B). 

 

Parties to the arbitration split the costs equally.  The costs must be paid within ten days of the date that the arbitrator serves the bill showing the arbitrator’s costs.  If any party fails to pay that party’s portion of the arbitrator’s costs within the ten days, the district court will enter a judgment and a writ of execution against the delinquent party for the amount owed by that party to the arbitrator, plus any costs and attorney’s fees incurred by the arbitrator in the collection of the costs.  The district court may only do this after giving the delinquent party the appropriate notice and opportunity to be heard.  A party who is an unrepresented, indigent person is exempt from paying a filing fees and the arbitrator may not collect costs from that party or any other party to the arbitration.  N.A.R. 23(C).  Any party who has a dispute regarding the propriety of an item in the arbitrator’s bill of costs must file with the arbitration commissioner within five days of the date that the arbitrator serves the bill reflecting the arbitrator’s costs.  This dispute can only be resolved by the arbitration commissioner.  N.A.R. 23(D). 

 

ARBITRATOR FEES

 

            Arbitrators are paid $100 per hour with a maximum of $1,000 per case unless otherwise authorized by the arbitration commissioner.  The arbitrator must show good cause to have the maximum increased.  An arbitrator has the right to require each party to submit up to $250 in advance towards the arbitrator’s fees and costs.  Each party has thirty days to submit the amount requested.  If a party fails to pay the required advance, the party may be subject to sanctions, including an award dismissing the complaint or entry of the non-complying party’s default.  N.A.R. 24(A). 

 

The process to determine the arbitrator’s fee is similar to the process for determining the costs.  The arbitrator must submit an itemized bill to the parties reflecting the time spent on a case.  This must be submitted within fifteen days of the date that the arbitrator serves the award in the action; within fifteen days of notice of removal of the case from the program by resolution or exemption; or within fifteen days of notice of change of arbitrator, whichever is earliest.  If the parties have paid an advance toward the arbitrator’s fees and costs, the arbitrator must indicate this advance on the itemized bill and return any portions of the advance that is over the amount on the itemized bill.  N.A.R. 24(B). 

 

            The arbitrator’s fees are paid equally between the parties.  The fee must be paid within ten days of the date that the arbitrator serves the bill reflecting the fee.  When any party fails to pay that party’s portion of the arbitrator’s fee within the ten days, the district court judge enters a judgment and a writ of execution against the delinquent party for the amount owed by that party to the arbitrator, plus any costs and attorney’s fees incurred by the arbitrator in the collection of the fee.  The district judge must give the delinquent party the appropriate notice and opportunity to be heard.  If one of the parties to the arbitration is an unrepresented indigent person who was exempted from paying a filing fee, the arbitrator may not collect a fee from that party or any party to the arbitration.  N.A.R. 24(C).  Any party who has a dispute regarding the fee of the arbitrator must file with the arbitration commissioner within five days of the date that the arbitrator serves the bill reflecting the arbitrator’s fee.  This dispute can only be resolved by the arbitration commissioner.  N.A.R. 24(D). 

 

COURT ANNEXED MEDIATION PROGRAM PROPOSAL

 

There is a proposal to create a Court Annexed Mediation Program as an alternative program to the Court Annexed Arbitration Program.  Parties could either agree to mediation or a party could request it.  If there were a disagreement, the commissioner would then determine whether or not mediation would be warranted.  The commissioner could require additional facts to be provided and require the parties to engage in a sixty-day period of discovery before determining whether mediation is appropriate.  The mediator would be selected through a process similar to that used to select arbitrators in CAAP, except that the list of potential mediators would contain three names rather than five and parties could strike only one name from the list.  ADR Nevada.

 

The mediators would be selected by a committee comprised of the chief judge, the commissioner, and a representative of the Alternative Dispute Resolution Committee of the Nevada State Bar.  Mediators would be required to meet certain experience requirements and to fulfill at least three hours of continuing educational every year.  Mediators would have the same statutory immunity as arbitrators in CAAP.  Mediators would also be entitled fees of $150 per hour, up to a maximum of $450 and costs up to $250.  They could also require a deposit from each party of up to $250 in advance to cover the fees and costs.  Mediations would occur within sixty days of the mediator’s appointment and the mediator would have complete discretion over the conduct of those proceedings.  Within five days after the mediation proceedings are concluded, the mediator would file with the commissioner and serve upon the parties a report advising whether the matter was resolved, an impasse has been declared, or no agreement was reached.  The parties would then be required to proceed with a short trial. Communications made in connection with a mediation proceeding would be privileged and confidential, except for the executed settlement agreement, and would be inadmissible at trial unless the parties agreed otherwise.  ADR Nevada.

 

If an impasse was declared or no agreement reached, the mediator could include in the report a value that believed to be fair that should have resolved the matter.  The mediator’s valuation would be sealed and the jury would not be informed about it or about any other aspect of the mediation.  After the conclusion of the trial, the mediator’s valuation would be unsealed and compared with the final judgment.  Whichever party failed to accept the mediator’s valuation must have obtained a result at trial that is better than the amount of the mediator’s valuation or that party would be liable for the other side’s costs and attorney’s fees up to $3,000, unless the parties agreed in writing to allow a greater award.  ADR Nevada.