- Applicability
These Mediation Procedures for the Resolution of U.S. Reinsurance and Insurance Disputes apply to disputes currently undergoing Arbitration under the American Arbitration Association/ Joint Resolution, LLC Procedures for the Resolution of U.S. Reinsurance Disputes and referred to the American Arbitration Association (hereinafter “AAA”) by Joint Resolution, LLC. There is no additional administrative fee where parties to a pending arbitration attempt to mediate their dispute under these procedures.
These Mediation Procedures for the Resolution of U.S. Reinsurance and Insurance Disputes apply to disputes currently undergoing Arbitration under the American Arbitration Association/ Joint Resolution, LLC Procedures for the Resolution of U.S. Reinsurance Disputes and referred to the American Arbitration Association (hereinafter “AAA”) by Joint Resolution, LLC. There is no additional administrative fee where parties to a pending arbitration attempt to mediate their dispute under these procedures.
If the parties want to initiate a mediation conference they can advise the AAA as follows:
The parties hereby submit the following dispute to mediation administered by the American Arbitration Association under the American Arbitration Association/Joint Resolution, LLC procedures for the Mediation of U.S. Reinsurance Disputes.
- Agreement of Parties
Whenever the parties decide to mediate an existing dispute under these procedures, the parties and their representatives, unless agreed otherwise in writing, shall be deemed to have made these procedural guidelines a part of their agreement and designate the AAA as the administrator of their mediation.
- Initiation of Mediation
The party initiating the mediation shall simultaneously notify the AAA and the other party or parties of the request. The initiating party shall provide the following information to the AAA and the other party or parties as applicable:
- A copy of the party’s stipulation to mediate.
- The names, regular mail addresses, email addresses, and telephone numbers of all parties to the dispute and representatives, if any, in the mediation.
- A brief statement of the nature of the dispute and the relief requested.
The parties by mutual agreement may vary any part of these procedures including, but not limited to, agreeing to conduct the mediation via telephone or other electronic or technical means.
- Representation
Subject to any applicable law, any party may be represented by persons of the party's choice. The names and addresses of such persons shall be communicated in writing to all parties and to the AAA.
- Appointment of the Mediator
Parties may search the online profiles of the Joint Resolution, LLC’s Panel of Insurance and Reinsurance Mediators (hereinafter referred to as “List of Mediators”) at www.adr.org in an effort to agree on a mediator. If the parties cannot agree to the appointment of a mediator, the mediator shall be appointed in the following manner:
- Each party shall submit one name from AAA/Joint Resolution List of Mediators to the AAA within seven days of the initiation of the mediation. Thereupon the AAA will pick the Mediator from the names submitted by the parties.
- Mediator's Impartiality and Duty to Disclose
The mediator is required to abide by the Model Standards of Conduct for Mediators in effect at the time a mediator is appointed to a case. Where there is a conflict between the Model Standards and any provision of these Mediation Procedures, these Mediation Procedures shall govern. The Standards require mediators to (i) decline a mediation if the mediator cannot conduct it in an impartial manner, and (ii) disclose, as soon as practicable, all actual and potential conflicts of interest that are reasonably known to the mediator and could reasonably be seen as raising a question about the mediator's impartiality.
Furthermore, prior to accepting an appointment, the mediator is required to make a reasonable inquiry to determine whether there are any facts that a reasonable individual would consider likely to create a potential or actual conflict of interest for the mediator. The mediator is required to disclose any circumstance likely to create a presumption of bias or prevent a resolution of the parties' dispute within the time-frame desired by the parties. Upon receipt of such disclosures, the AAA shall immediately communicate the disclosures to the parties for their comments.
The parties may, upon receiving disclosure of actual or potential conflicts of interest of the mediator, waive such conflicts and proceed with the mediation. In the event that a party disagrees as to whether the mediator shall serve, or in the event that the mediator's conflict of interest might reasonably be viewed as undermining the integrity of the mediation, the mediator will be replaced.
- Vacancies
If any mediator shall become unwilling or unable to serve, the AAA will appoint another mediator, unless the parties agree otherwise, in accordance with section 5.
- Duties and Responsibilities of the Mediator
- The mediator shall conduct the mediation based on the principle of party self-determination. Self-determination is the act of coming to a voluntary, un-coerced decision in which each party makes free and informed choices as to process and outcome.
- The mediator is authorized to conduct separate or ex parte meetings and other communications with the parties and/or their representatives, before, during, and after any scheduled mediation conference. Such communications may be conducted via telephone, in writing, via email, online, in person or otherwise.
- The parties are encouraged to exchange all documents pertinent to the relief requested. The mediator may request the exchange of memoranda on issues, including the underlying interests and the history of the parties' negotiations. Information that a party wishes to keep confidential may be sent to the mediator, as necessary, in a separate communication with the mediator.
- The mediator does not have the authority to impose a settlement on the parties but will attempt to help them reach a satisfactory resolution of their dispute. Subject to the discretion of the mediator, the mediator may make oral or written recommendations for settlement to a party privately or, if the parties agree, to all parties jointly.
- In the event a complete settlement of all or some issues in dispute is not achieved within the scheduled mediation session(s), the mediator may continue to communicate with the parties, for a period of time, in an ongoing effort to facilitate a complete settlement.
- The mediator is not a legal representative of any party and has no fiduciary duty to any party.
- Responsibilities of the Parties
The parties shall ensure that appropriate representatives of each party, having authority to consummate a settlement, attend the mediation conference.
Prior to and during the scheduled mediation conference session(s) the parties and their representatives shall, as appropriate to each party's circumstances, exercise their best efforts to prepare for and engage in a meaningful and productive mediation.
- Privacy
Mediation sessions and related mediation communications are private proceedings. The parties and their representatives may attend mediation sessions. Other persons may attend only with the permission of the parties and with the consent of the mediator.
- Confidentiality
Subject to applicable law or the parties' agreement, confidential information disclosed to a mediator by the parties or by other participants (witnesses) in the course of the mediation shall not be divulged by the mediator. The mediator shall maintain the confidentiality of all information obtained in the mediation, and all records, reports, or other documents received by a mediator while serving in that capacity shall be confidential.
The mediator shall not be compelled to divulge such records or to testify in regard to the mediation in any adversary proceeding or judicial forum.
The parties shall maintain the confidentiality of the mediation and shall not rely on, or introduce as evidence in any arbitral, judicial, or other preceding the following, unless agreed to by the parties or required by applicable law:
- Views expressed or suggestions made by a party or other participant with respect to a possible settlement of the dispute;
- Admissions made by a party or other participant in the course of the mediation proceedings;
- Proposals made or views expressed by the mediator; or
- The fact that a party had or had not indicated willingness to accept a proposal for settlement made by the mediator.
- No Stenographic Record
There shall be no stenographic record of the mediation process.
- Termination of Mediation
The mediation shall be terminated:
- By the execution of a settlement agreement by the parties; or
- By a written or verbal declaration of the mediator to the effect that further efforts at mediation would not contribute to a resolution of the parties' dispute; or
- By a written or verbal declaration of all parties to the effect that the mediation proceedings are terminated; or
- When there has been no communication between the mediator and any party or party's representative for 21 days following the conclusion of the mediation conference.
- Exclusion of Liability
Neither the AAA nor any mediator is a necessary party in judicial proceedings relating to the mediation. Neither the AAA nor any mediator shall be liable to any party for any error, act or omission in connection with any mediation conducted under these procedures.
- Interpretation and Application of Procedures
The mediator shall interpret and apply these procedures insofar as they relate to the mediator's duties and responsibilities. All other procedures shall be interpreted and applied by the AAA.
- Deposits
Unless otherwise directed by the mediator, the AAA will require the parties to deposit in advance of the mediation conference such sums of money as it, in consultation with the mediator, deems necessary to cover the costs and expenses of the mediation and shall render an accounting to the parties and return any unexpended balance at the conclusion of the mediation.
- Expenses
All expenses of the mediation, including required traveling and other expenses or charges of the mediator, shall be borne equally by the parties unless they agree otherwise. The expenses of participants for either side shall be paid by the party requesting the attendance of such participants.
- Cost of the Mediation
There is no additional administrative fee when the parties to a pending arbitration attempt to mediate their dispute under these procedures. The administrative fee for initiating a mediation in connection with a matter not in arbitration under these procedures is $500.
Mediators will receive an hourly mediation rate of $350.00 plus reasonable out-of-pocket expenses including, but not limited to, transportation, lodging and meals. This rate will cover both the mediator’s compensation and an allocated portion for Joint Resolution, LLC. All arrangements for the compensation of a mediator shall be administered through the AAA and not directly between the parties and the mediator.
There is a four-hour minimum charge for a mediation conference. Expenses referenced in Section 17 may also apply.
If a matter submitted for mediation is withdrawn or cancelled or results in a settlement after the agreement to mediate is filed but prior to the mediation conference the parties are responsible for any mediator time and charges incurred.
The parties will be billed equally for all costs unless they agree otherwise.
The costs described above do not include the use of AAA conference rooms. Conference rooms are available on a rental basis. Please contact your local AAA office for availability and rates.