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ISRI Arbitration Service

ISRI Arbitration Service

I ISRI established an arbitration service as a means to enable

members to use arbitration to resolve disputes.

ISRI arbitration is a voluntary procedure and must be agreed

upon by both parties in the dispute. It is not required that

both parties to the dispute be ISRI members.

The complete procedure for arbitration is set forth in ISRI’s

“Rules for Arbitration,” which are available from Association

headquarters in Washington, D.C. The rules contain the nec-

essary form that must be completed to initiate arbitration.

ISRI treats all filings, awards, and proceedings as confiden-


The rules are highlighted below:

1. Anyone may propose arbitration in a dispute, though at

least one party must be a member of the association.

Both parties must agree to the arbitration by signing a

“Submission to Arbitrate” form and agreeing to abide by

the applicable Arbitration Rules.

2. A panel of arbitrators has been established by the asso-

ciation. The arbitrators serve without compensation,

except for reasonable expenses. The arbitration parties

must draw their arbitrators from the panel. A maximum

of three arbitrators can be issued in any proceeding; the

parties are encouraged to use a single arbitrator.

3. There is a specific schedule of fees listed in the “Rules

for Arbitration.” Each party must deposit with the asso-

ciation in advance $500 plus $500 for each arbitrator.

The total deposit for each party thus is either $1,000 or

$2,000, depending on whether one arbitrator is to be

used or three. A portion of the fee is refundable if not

required to defray arbitrators’ costs. The arbitrators

may require the losing party to reimburse the prevailing

party for its share of these costs.

4. The arbitration procedure usually includes a hearing, at

which time the parties involved are required to appear,

present their respective cases, and be available for

questioning by the arbitrator(s). All physical evidence

(contracts, correspondence, relevant comments, etc.)

may be required to be submitted in advance to the arbi-

trators. A party in the arbitration may be accompanied

by counsel but must inform the other party in advance

and receive permission from the arbitrators. Witnesses

may also be called to an arbitration hearing. There is

also an optional procedure for conducting the arbitra-

tion without an oral hearing.

5. An award by the arbitrator(s) will be made promptly,

within 20 days after hearings have been completed or

final briefs submitted. The award is made in writing.

6. The rules state that the parties to the dispute shall be

deemed to have consented that a judgment upon the

award be entered in any court having jurisdiction over

an action to enforce the award.

Members who wish to provide an automatic basis for the

settlement of any disputes arising from a transaction are

encouraged to provide in their contracts that the ISRI Arbi-

tration Procedure shall prevail in the event of any ensuing

controversy and that each party will take all necessary steps

to initiate such arbitration. Members are urged to obtain and

carefully read the “Rules for Arbitration” before proceeding.

For more information, contact Thomas Casey, 202/662-

8532 or