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.
|