Parties may consider Non-Administered Arbitration (“NAA”) to resolve their next dispute. NAA is an informal dispute resolution process designed to proceed without the involvement of a separate administrating entity such as the American Arbitration Association. Instead of a separate administering entity, the parties, and the arbitrator chosen by the parties, administer the proceedings.
Rules for Non-Administered, Self-Administered, or Ad Hoc Arbitration
The International Institute for Conflict Prevention and Resolution (“CPR”) has developed a set of rules to assist parties through the non-administered arbitration process. CPR was created to find ways to lower the cost of litigation. Today, CPR is an independent non-profit that helps businesses and their counsel prevent and resolve commercial disputes. The non-administered arbitration concept, also referred to as ad hoc, or self-administered arbitration, is for the parties to run their own arbitration and only utilize an administrative entity if the parties experience impasse. The intent is to lower cost and provide parties with more autonomy in the arbitration process.
Non-Administered Arbitration Language in Business Contracts
Business lawyers should consider adding NAA language to contracts and litigators should consider non-administered arbitration as an alternative to other conflict resolution methods. Contact Tim Warner with additional non-administered arbitration and other arbitration questions.