TABLE OF CONTENTS
Commercial Arbitration Rules
Rule 3. Waiver of Right to Object
Rule 5. Administrative Review Council
Rule 7. Filing of an Arbitration
Rule 9. Answers and Counterclaims
Rule 11. Statements of Claim and Defense
Rule 12. General Powers of Tribunal
Rule 14. Consolidation of Cases
Rule 16. Execution of Consolidation and Joinder
Rule 17. Interpretation and Application of Rules
Rule 19. Administrative Conference
Rule 21. Appointment of Arbitrator(s)
Rule 22. Direct Appointment by a Party
Rule 23. Challenge and Disqualification of Arbitrator(s)
Rule 24. Procedures for Challenging the Arbitrator
Rule 26. Disclosure by Arbitrator
Rule 27. Communication with Tribunal
Rule 30. Exchange of Documents and Production of Information
Rule 31. Enforcement Powers of Arbitrator
Rule 32. Date, Time, Place, and Method of Hearing
Rule 33. Attendance at Hearing
Rule 35. Oaths Required before First Hearing
Rule 36. Official Record of Proceedings
Rule 39. Arbitration in the Absence of a Party or Representative
Rule 40. Conduct of Proceedings
Rule 43. Evidence by Written Statements and Post-Hearing Filing of Documents or Other Evidence
Rule 44. Inspection or Investigation
Rule 46. Emergency Measures of Protection
Rule 49. Waiver of Right to Object
Rule 51. Serving of Notice and Communications
Rule 57. Award Upon Settlement – Consent Award
Rule 58. Delivery of Award to Parties
Rule 59. Modification of Award
Rule 60. Release of Documents for Judicial Proceedings
Rule 61. Applications to Court and Exclusion of Liability
Rule 64. Neutral Arbitrator’s Compensation
Rule 66. Remedies for Nonpayment
Rule 68. Miscellaneous Provisions
Exhibit A. Administration Fee Charging Policies
Exhibit B. Expedited Arbitration Procedures
Important Notice
These rules and any amendment thereto shall apply in the form in effect at the time when the administrative filing requirements are met for a request for arbitration or a submission agreement is received by Lextar Arbitration Services (Lextar).
To ensure that you have the most current information, see our web site at www.lextar.org.
Introduction
Commercial arbitration plays a pivotal role in modern business transactions by offering an alternative dispute resolution mechanism that is efficient, confidential, and tailored to the specific needs of the parties involved.
Unlike traditional litigation, arbitration offers flexibility in choosing arbitrators with expertise in the relevant industry, ensuring decisions are made by knowledgeable professionals. Moreover, arbitration proceedings are typically faster and less costly than litigation, reducing the burden on businesses and allowing them to swiftly resolve disputes and maintain productive relationships.
The confidentiality of arbitration proceedings also appeals to businesses seeking to protect their sensitive information from public disclosure. Ultimately, the importance of commercial arbitration lies in its ability to provide a fair, expedient, and private resolution to disputes, fostering confidence in commercial transactions and supporting a conducive environment for international trade and investment.
Lextar Arbitration Services (Lextar) offers a broad range of dispute resolution services to business corporations, partnerships, real estate brokerages, financial advisers, private loaners, commercial goods manufacturers, purchasers and sellers, attorneys of law, individual persons, and trade participants, etc. Services are available through its many offices located in the major cities throughout Canada, the United States, and China. Hearings may be held via video conferencing technology or physically at locations convenient for the parties by Lextar’s highly professional arbitrators and are not limited to the cities with Lextar offices.
In addition, Lextar serves as a center for education and training for both legal professionals and the general public, and conducts research on important legal issues as well as various forms of alternative dispute resolution.
Standard Arbitration Clause
The parties may agree to arbitrate future disputes by incorporating the following clause into their contracts. Alternatively, they may sign and date a printout of the following clause as a supplementary agreement or an annex to their contracts:
Dispute Resolution.
Any controversy, dispute, or claim of any nature arising out of, in connection with, or in relation to the interpretation, performance, enforcement or breach of this Contract (and any closing document executed in connection herewith), including any claim based on contract, tort or statute, shall be resolved at the written request of any party to this Contract by binding arbitration. The arbitration shall be administered in accordance with the then current Commercial Arbitration Rules of Lextar Arbitration Services. Any matter to be settled by arbitration shall be submitted to Lextar Arbitration Services in the state/province in which the Property is located or the claimant is located in the case of any other disputes not involving a real estate property.
The parties agree that the arbitral tribunal shall consist of (one) (three) arbitrator(s). If both parties are unable to jointly appoint the sole arbitrator within 30 days after the claimant’s written request for arbitration is accepted, or within 5 days in the case of an expedited proceeding as requested by either party, then Lextar Arbitration Services shall make the appointment on their behalf, and both parties shall accept the appointment as made by themselves. In case both parties agree that the arbitral tribunal shall consist of 3 arbitrators, each of the parties shall appoint its own arbitrator while the third shall be appointed by Lextar Arbitration Services to serve as thechief arbitrator.
The arbitration decision shall be final and binding, and enforceable in any court of competent jurisdiction. The arbitrator shall awardarbitration-related fees and costs to the prevailing party and charge the cost of arbitration to the party which is not the prevailing party.
Notwithstanding anything herein to the contrary, this dispute resolution clause shall not prevent any party to the dispute from seeking and obtaining equitable relief on a temporary or permanent basis, including, without limitation, a temporary restraining order, a preliminary or permanent injunction or similar equitable relief, from a court of competent jurisdiction located in the state in which the Property is located the claimant is located in the case of any other disputes not involving a real estate property (to which all parties hereto consent to venue and jurisdiction) by instituting a legal action or other court proceeding in order to protect or enforce the rights of such party under this Contract or to prevent irreparable harm and injury. The court’s jurisdiction over any such equitable matter, however, shall be expressly limited only to the temporary, preliminary, or permanent equitable relief sought; all other claims initiated under this Contract between the parties hereto shall be determined through final and binding arbitration in accordance with this Section.
Arbitration of existing disputes may be accomplished by use of the following:
We, the undersigned parties, hereby agree to submit to arbitration administered by Lextar Arbitration Services under its Commercial Arbitration Rules the following Controversy:
__________________________________________________________________________________
_________________________________________________________________________________.
We further agree that the above controversy be submitted to (one) (three) arbitrator(s).In the case of a 3-member arbitral tribunal, each party may appoint its own arbitrator with the third one to be appointed by Lextar Arbitration Services to serve as the chief arbitrator. In the case of a sole arbitrator tribunal, we agree that the sole arbitrator be appointed by Lextar Arbitration Services if we fail to agree on the sole arbitrator within 5 days after the claimant’s request for arbitration is accepted.
We further agree that we will faithfully observe this agreement and the rules, that we will abide by and perform any award rendered by the arbitrator(s), and that a judgment of any court having jurisdiction may be entered on the award.
The services of Lextar Arbitration Services are generally concluded with the transmittal of the award. Although there is voluntary compliance with the majority of awards, judgment on the award can be entered in a court having appropriate jurisdiction, if necessary.
COMMERCIAL ARBITRATION RULES
Rule 1. Agreement of Parties
(a) The parties shall be deemed to have made these Rules a part of their arbitration agreement whenever they have provided for arbitration by Lextar Arbitration Services (“Lextar”) under its Commercial Arbitration Rules or for arbitration by Lextar of a domestic commercial dispute without specifying particular rules. These Rules and the amendments thereto, if any, shall apply in the form in effect at the time the administrative requirements are met for a Request for Arbitration or Submission to Arbitration received by Lextar. Any disputes regarding which Lextar rules shall apply shall be decided by Lextar. The parties, by written agreement, may vary the procedures set forth in these Rules. After appointment of the tribunal, such modifications may be made only with the approval of the tribunal.
(b) Upon the request of a party and the agreement of all parties concerned, the Expedited Procedures shall apply in any case in which no disclosed claim or counterclaim exceeds $1,000,000, exclusive of interest, attorneys’ fees, and arbitration fees and costs. Parties may also agree to use these Procedures in larger cases. The Expedited Procedures shall be applied as described in EP Rule 1 through EP Rule 10, in addition to any other portion of these Rules that is not in conflict with the Expedited Procedures.
Rule 2. Delegation of Duties
(a) When parties agree to arbitrate under these Rules, or when they provide for arbitration by Lextar and an arbitration is initiated under these Rules, they thereby authorize Lextar to administer the arbitration.
(b) The authority and duties of Lextar are prescribed in the agreement of the parties and in these Rules and may be carried out through Lextar’s representatives as it may direct. Lextar may, in its discretion, assign the administration of an arbitration to any of its offices. Arbitration cases administered under these Rules shall only be administered by Lextar or by an individual or organization authorized by Lextar.
Rule 3. Waiver of Right to Object
A party which proceeds with the arbitration without promptly raising its objection to a failure to comply with any provision of the Rules, or of any other rules applicable to the proceedings, any direction given by the arbitral tribunal, or any requirement under the arbitration agreement relating to the constitution of the arbitral tribunal or the conduct of the proceedings, shall be deemed to have waived its right to object.
Rule 4. Conduct of Parties
(a) Lextar requires that parties and their representatives conduct themselves in accordance with Lextar’s Standards of Conduct for Parties and Representatives when utilizing Lextar’s services.
(b) Failure to do so may result in Lextar’s declining to further administer a particular case or caseload.
(c) It is the responsibility of all parties to acquaint themselves with these Rules and all exhibits annexed hereto or made available on Lextar's official website. Failure to acquaint oneself with any of Lextar's rules and policies shall not serve as a justification for any adverse consequences arising therefrom or for refusing to pay any fees due.
Rule 5. Administrative Review Council
For cases where Lextar, in its sole discretion, deems it appropriate, Lextar may act through its Administrative Review Council to take the following administrative actions:
(1) determine challenges to the appointment or continuing service of an arbitrator;
(2) make an initial determination as to the locale of the arbitration, subject to the power of the arbitrator to make a final determination;
(3) decide whether a party has met the administrative requirements to file an arbitration under these Rules;
(4) update its fee schedules and other appendices; and
(5) amend any of the provisions in these Rules.
Rule 6. Roster of Arbitrators
Lextar shall establish and maintain a Roster of Arbitrators (“Roster”). The parties shall appoint arbitrators in the Roster unless the arbitration clause or arbitration agreement provides otherwise. The terms “arbitrator” and “tribunal” may be used interchangeably when the tribunal is composed of a sole arbitrator and the context is appropriate.
Rule 7. Filing of an Arbitration
(a) Arbitration under an arbitration provision in a contract shall be initiated by the initiating party (“claimant”) filing with Lextar a Request for Arbitration or a Submission to Arbitration, a copy of the applicable arbitration agreement from the parties’ contract which provides for arbitration, and paying the non-refundable filing fee.
(b) Arbitration pursuant to a court order shall be initiated by the initiating party filing with Lextar a Request for Arbitration, a copy of any applicable arbitration agreement from the parties’ contract which provides for arbitration, and paying the non-refundable filing fee.
(1) The filing party shall include a copy of the court order.
(2) The non-refundable filing fee must be paid before a matter is considered properly filed. If the court order directs that a specific party is responsible for the filing fee, it is the responsibility of the filing party to either make such payment to Lextar and seek reimbursement as directed in the court order or to make other such arrangements so that the filing fee is submitted to Lextar with the Request.
(c) The party filing the Request with Lextar is the claimant and the opposing party is the respondent regardless of which party initiated the court action. Parties may request that the arbitrator alter the order of proceedings if necessary pursuant to Rule 40 regarding conduct of proceedings.
(d) Parties to any existing dispute who have not previously agreed to use these Rules may commence an arbitration under these Rules by filing a written Submission Agreement and paying the filing fee. To the extent that the parties’ Submission Agreement contains any variances from these Rules, such variances should be clearly stated in the Submission Agreement.
(e) Information to be included with any arbitration filing includes:
(1) the name of each party;
(2) the address of each party and, if known, the telephone number and email address;
(3) if applicable, the name, address, telephone number, and email address of any known representative for each party;
(4) a statement setting forth the nature of the claim including the relief sought and the amount involved;
(5) the locale requested if the arbitration agreement does not specify one; and
(6) the language to be used in Arbitration if it is specified in the arbitration agreement.
Rule 8. Filing Procedures
(a) The initiating party may file or submit a dispute to Lextar in the following manner:
(1) through Lextar’s File Online webpage, located at www.lextar.org;
(2) by filing a completed Request for Arbitration or a Submission to Arbitration with any Lextar office, regardless of the intended locale of hearing; or
(3) by emailing a completed Request or Submission to casefiling@lextar.org, with payment to follow as directed by Lextar.
(b) The filing party shall simultaneously provide a copy of the Request and any supporting documents to the opposing party.
(c) Any papers, notices, or process necessary or proper for the initiation of an arbitration under this Rule may be served on a party include:
(1) by mail addressed to the party or its authorized representative at their last known address;
(2) by electronic service/email, with the prior agreement of the party being served;
(3) by personal service; or
(4) by any other service methods provided for under the applicable procedures of the courts of the state where the party to be served is located.
(d) Notwithstanding the different methods of filing, parties are encouraged to file and communicate electronically as the first option.
(e) Lextar shall provide notice to the parties (or their representatives if so named) of the receipt of a Request or Submission when the administrative filing requirements have been satisfied. The date on which the filing requirements are satisfied shall establish the date of filing the dispute for administration. However, all disputes in connection with Lextar’s determination of the date of filing may be decided by the tribunal.
(f) It is the responsibility of the filing party to ensure that any conditions precedent to the filing of a case are met prior to filing an arbitration, as well as any time requirements associated with the filing. Any dispute regarding whether a condition precedent has been met may be raised with the tribunal for determination.
(g) Lextar has the authority to make an administrative determination whether the filing requirements set forth in this Rule have been met.
(h) If the filing does not satisfy the filing requirements set forth in Rule 7, Lextar shall acknowledge to all named parties receipt of the incomplete filing, and the filing may be returned to the initiating party for corrections.
Rule 9. Answers and Counterclaims
(a) A respondent may file an answering statement with Lextar within 14 calendar days after notice of the filing of the Request is sent by Lextar. The respondent shall, at the time of any such filing, send a copy of any answering statement to the claimant and to all other parties to the arbitration. If no answering statement is filed within the stated time, the respondent will be deemed to deny the claim. Failure to file an answering statement shall not operate to delay the arbitration.
(b) A respondent may file a counterclaim at any time after notice of the filing of the Request is sent by Lextar, subject to the limitations set forth in Rule 10 below. The respondent shall send a copy of the counterclaim to the claimant and all other parties to the arbitration. If a counterclaim is asserted, it shall include a statement setting forth the nature of the counterclaim, including the relief sought and the amount involved. The filing fee as specified in the applicable Lextar Fee Schedule, which is non-refundable, must be paid at the time of filing. The claimant may file an answering statement or reply in response to the counterclaim with Lextar within 14 calendar days after notice of the filing of the counterclaim is sent by Lextar.
(c) If the respondent alleges that a different arbitration provision shall prevail, the matter will be administered in accordance with the arbitration provision submitted by the initiating party subject to a final determination by the tribunal.
(d) If the counterclaim does not meet the requirements for filing a claim and the deficiency is not cured by the date specified by Lextar, it may be returned to the filing party.
Rule 10. Amendment of Claim
(a) A party may at any time prior to the close of the hearing or by any earlier date established by the tribunal increase or decrease the amount of its claim or counterclaim. Written notice of the change of claim amount must be provided to Lextar and all parties. If the change of claim amount results in an increase in the administrative fee, the balance of the fee is due before the change of claim or counterclaim amount may be accepted by the tribunal. After the tribunal is appointed, however, a party may increase the amount of its claim or counterclaim, or alter its request for non-monetary relief, only with the approval of the tribunal.
(b) Any new or different claim or counterclaim, as opposed to an increase or decrease in the amount of a pending claim or counterclaim, shall be made in writing and filed with Lextar, and a copy shall be provided to the other party, who shall have 14 calendar days from the date of such transmittal within which to file an answer to the proposed change of claim or counterclaim with Lextar. After the tribunal is appointed, however, no new or different claim or counterclaim may be submitted except with the approval of the tribunal.
(c) A party that filed a claim or counterclaim of an undisclosed or undetermined amount must specify the amount of the claim or counterclaim to Lextar, all parties, and the tribunal at least seven calendar days prior to the commencement of the hearing or by any other date established by the tribunal. If the disclosed amount of the claim or counterclaim results in an increased administrative fee, that fee must be paid at the time the claim or counterclaim amount is disclosed. For good cause shown and with the approval of the tribunal, a party may proceed to the hearing with an undisclosed or undetermined claim or counterclaim, provided that the final amount of the claim or counterclaim is set forth in a post-hearing brief or submission and the appropriate administrative fees are paid.
(d) Notwithstanding the aforementioned subparagraph in this Rule, the amendment to the claim shall not lead to a change in the nature of the claim and shall not result in prejudice to other parties. Where any other party challenges the amendment of claim on grounds of prejudice, the tribunal may refuse the amendment if the prejudice could not be compensated for costs or an adjournment.
Rule 11. Statements of Claim and Defense
(a) A Statement of Claim must set out:
(1) the material facts supporting the claim;
(2) the grounds, including applicable law, that support the claim;
(3) the points in issue; and
(4) the relief or remedy the claimant is seeking.
(b) A Statement of Defense and any Counterclaim must set out:
(1) the material facts supporting the defense or counterclaim;
(2) the grounds, including applicable law, that support the defense or counterclaim;
(3) the points in issue;
(4) the relief or remedy the respondent is seeking; and
(5) the respondent’s address, telephone number, and email address for delivery of documents.
(c) In case the respondent files a counterclaim, the claimant must deliver to the tribunal and Lextar a Statement of Defense to Counterclaim within 14 days after receiving the Counterclaim. The Statement of Defense to Counterclaim must set out:
(1) the material facts supporting the defense;
(2) the grounds, including applicable law, that support the defense;
(3) the points in issue; and
(4) the relief or remedy the claimant is seeking.
(d) If a respondent fails to deliver a Statement of Defense, or a claimant fails to deliver a Statement of Defense to Counterclaim, that party is deemed to deny the allegations in the Statement of Claim or Counterclaim.
Rule 12. General Powers of Tribunal
(a) Unless the parties agree otherwise, the tribunal must adopt procedures it considers will best fulfil the purposes of arbitrating the dispute, including:
(1) order an adjournment of the proceedings from time to time;
(2) order inspection of documents, exhibits, or other property;
(3) order the recording or transcription (or both) of all or part of oral hearings;
(4) extend or abridge:
(i) a period of time that the tribunal already fixed or determined; or
(ii) any period of time set out in these Rules, other than the 60-day period of time set out in Rule 54 for the tribunal to make all final awards;
(5) empower a tribunal member to hear motions and make procedural orders, including settling matters at the preliminary hearing, that do not deal with the substance of the dispute;
(6) request further statements clarifying issues in dispute;
(7) give direction on procedural matters; and
(8) request court assistance in taking evidence.
(b) Any decision made by Lextar regarding the filing requirements and procedures shall not interfere with the tribunal’s authority to determine jurisdiction pursuant to Rule 13 regarding jurisdiction.
Rule 13. Jurisdiction
(a) The tribunal shall have the power to rule on its own jurisdiction, including any objections with respect to the existence, scope, or validity of the arbitration agreement or to the arbitrability of any claim or counterclaim, without any need to refer such matters first to a court. The tribunal shall have the power to determine the existence or validity of a contract of which an arbitration clause forms a part. Such an arbitration clause shall be treated as an agreement independent of the other terms of the contract. A decision by the tribunal that the contract is null and void shall not for that reason alone render the arbitration clause invalid.
(b) A party must object to the jurisdiction of the tribunal or to the arbitrability of a claim or counterclaim no later than the filing of the answering statement to the claim or counterclaim that gives rise to the objection. The tribunal may rule on such objections as a preliminary matter or as part of the final award.
Rule 14. Consolidation of Cases
(a) Two or more arbitrations may be consolidated if all parties to all of the arbitrations to be consolidated so agree.
(b) Unless all parties agree to consolidation, the party requesting consolidation of two or more arbitrations must file with Lextar and serve on all other parties a written request for consolidation with the supporting reasons for such request within 30 days of the date Lextar determines that all administrative filing requirements were satisfied for the last-filed case that is part of the consolidation request. Such time limit may be extended by the arbitrator appointed in the first-filed case upon a showing of good cause for the late request. The other parties to the arbitrations shall provide their written responses to the consolidation request within 10 calendar days after Lextar sends notice of receipt of the request.
(c) Lextar may, at its discretion, either direct that the consolidation request be decided by the arbitrator appointed in the first-filed case or may appoint a consolidation arbitrator for the sole purpose of deciding the consolidation request.
(d) The arbitrator deciding consolidation may order consolidation of two or more cases for all purposes or for such limited purposes and under such conditions as the arbitrator deems appropriate.
(e) Absent agreement of all parties, an arbitrator appointed for the sole purpose of deciding the consolidation request shall have no further power to act, and shall be removed from the case, after the consolidation request is decided.
(f) In deciding whether to consolidate, the arbitrator or consolidation arbitrator shall take into account all relevant circumstances, including:
(1) the terms and compatibility of the agreements to arbitrate,
(2) the applicable laws,
(3) the timeliness of the request to consolidate and the progress already made in the arbitrations,
(4) whether the arbitrations raise common issues of law and/or fact, and
(5) whether consolidation of the arbitrations would serve the interests of justice and efficiency.
Rule 15. Joinder of Parties
(a) Additional parties may be joined to an arbitration if all parties to the arbitration and the parties proposed to be joined so agree.
(b) Absent such consent, all requests for joinder must be submitted to Lextar prior to the appointment of tribunal pursuant to these Rules or within 30 days of the date Lextar determines that all administrative filing requirements have been satisfied. The tribunal may extend this deadline on a showing of good cause for the late requests.
(c) If the existing parties and the parties proposed to be joined are unable to agree to the joinder of those additional parties to an ongoing arbitration, the tribunal shall decide whether the parties should be joined. If the tribunal has not yet been appointed in the case, Lextar may appoint an arbitrator for the sole purpose of deciding the joinder request. Absent agreement of all parties, the arbitrator appointed for the sole purpose of deciding the joinder request shall have no further power to act, and shall be removed from the case, after the joinder request is decided.
(d) The party requesting the joinder of one or more parties to a pending arbitration must file with Lextar a written request that provides the name and contact information of such parties; the name and contact information of their representatives, if known; and the supporting reasons for such request, including the applicable law. The requesting party must provide a copy of the joinder request to all parties in the arbitration and all parties it seeks to join at the same time it files the request with Lextar. The other parties to the arbitration and the parties sought to be joined shall provide their written responses to the joinder request within 14 days after Lextar sends notice of receipt of the request for joinder.
(e) The requesting party shall comply with the provisions of Rule 7 regarding filing requirements as to all parties sought to be joined.
Rule 16. Execution of Consolidation and Joinder
(a) If an arbitrator determines that separate arbitrations shall be consolidated or that the joinder of additional parties is permissible, that arbitrator may also determine:
(1) whether any arbitrator previously appointed to an existing case that was consolidated shall remain on the newly constituted case;
(2) whether any arbitrator previously appointed to a case where additional parties have been joined shall remain;
(3) if appropriate, a process for selecting the arbitrator(s) to fill any vacancies; and
(4) unless agreed otherwise by the parties, the allocation among the parties of arbitrator compensation and expenses, subject to reapportionment by the arbitrator appointed to the ongoing or newly constituted case in the final award.
(b) Lextar may take reasonable administrative actions to accomplish any consolidation or joinder ordered by the arbitrator or as agreed to by the parties. Pending the determination on a consolidation or joinder request, Lextar shall have authority to stay the ongoing arbitration or arbitrations impacted by the consolidation or joinder request, at its sole discretion.
Rule 17. Interpretation and Application of Rules
The arbitrator shall interpret and apply these Rules insofar as they relate to the arbitrator’s powers and duties. When there is more than one arbitrator and a difference arises among them concerning the meaning or application of these Rules, it shall be decided by a majority vote. If that is not possible, either an arbitrator or a party may refer the question to Lextar for final decision. All other rules shall be interpreted and applied by Lextar.
Rule 18. Mediation
(a) In all cases where a claim or counterclaim exceeds $100,000, upon Lextar’s administration of the arbitration or at any time while the arbitration is pending, the parties shall mediate their dispute pursuant to the applicable provisions of Lextar’s Commercial Mediation Procedures, or as otherwise agreed to by the parties concerned.
(b) Absent an agreement of the parties to the contrary, the mediation shall take place concurrently with the arbitration and shall not serve to delay the arbitration proceedings.
(c) Any party to an arbitration may, at any time, unilaterally opt out of this Rule upon notification to Lextar and the other parties to the arbitration. In the event one party opts out of this Rule, it shall be deemed that there’s no agreement to mediation and the ongoing mediation shall be deemed to be unsuccessful.
(d) Unless agreed to by all parties and the mediator, the mediator shall not be appointed as an arbitrator to the case.
Rule 19. Administrative Conference
At the request of any party or upon Lextar’s own initiative, Lextar may conduct an administrative conference, in person, by videoconference, or by telephone, with the parties and/or their representatives. The conference may address such issues as arbitrator selection, mediation of the dispute, potential exchange of information, a timetable for hearings, and any other administrative matters.
Rule 20. Fixing of Locale
(a) The parties may mutually agree on the locale where the arbitration is to be held. When the parties’ arbitration agreement requires a specific locale, absent the parties’ agreement to change it, or a determination by the tribunal that applicable law requires a different locale, the locale shall be that specified in the arbitration agreement.
(b) Any disputes regarding the locale that are to be decided by Lextar must be submitted to Lextar and all other parties within 14 calendar days after Lextar sends notice of the filing of the Request or by the date established by Lextar.
(c) Disputes regarding locale shall be determined in the following manner:
(1) When the parties’ arbitration agreement is silent with respect to locale, and if the parties disagree as to the locale, Lextar shall initially determine the locale of arbitration, subject to the power of the tribunal after appointment to make a final determination on the locale.
(2) If the reference to a locale in the arbitration agreement is ambiguous, and the parties are unable to agree to a specific locale, Lextar shall determine the locale, subject to the power of the tribunal to finally determine the locale.
(3) If the parties’ arbitration agreement specifies more than one possible locale, the filing party may select any of the specified locales at the time of filing, subject to the power of the tribunal to finally determine the locale.
(d) The tribunal shall, at its sole discretion, have the authority to conduct special hearings for document production purposes or otherwise at other locations if reasonably necessary and beneficial to the process.
Rule 21. Composition of Tribunal; Appointment of Arbitrator(s)
(a) The arbitral tribunal may be composed of any odd numbers of arbitrators, subject to the agreement of all parties concerned.
(b) If the arbitration clause or agreement is silent on the number of arbitrators forming the tribunal and the Parties cannot agree on the number of arbitrators, a sole arbitrator shall be appointed.
(c) In case the parties have not appointed an arbitrator and have not provided any other method of appointment, the arbitrator shall be appointed in the following manner:
(1) Lextar shall send simultaneously to each party to the dispute an identical list of 5 (unless Lextar decides that a different number is appropriate) names of persons chosen from its Roster of Arbitrators. The parties are encouraged to agree to an arbitrator from the submitted list and to advise Lextar of their agreement.
(2) If the parties are unable to agree upon an arbitrator, each party to the dispute shall have 7 calendar days from the transmittal date in which to strike names they object to, number the remaining names in order of preference, and return the list to Lextar.
(3) Lextar may limit the number of strikes permitted at its discretion. The parties are not required to exchange their selection lists.
(4) If a party does not return its list within the specified time, all persons named therein shall be deemed acceptable to that party. From among the persons who have been approved on both lists, and in accordance with the designated order of mutual preference, Lextar shall invite the acceptance of an arbitrator to serve.
(5) If the parties fail to agree on any of the persons named, or if the acceptable arbitrators are unable to serve, or if for any other reason the appointment cannot be made from the submitted lists, Lextar shall have the power to make the appointment from among other members of the Roster without the submission of additional lists.
(6) Unless the parties agree otherwise, when there are two or more claimants or two or more respondents, Lextar may appoint all the arbitrators.
(d) If three arbitrators are to be appointed, each Party shall appoint one arbitrator. The two arbitrators thus appointed shall choose the third arbitrator who will act as the chief arbitrator or “Chair” of the arbitral tribunal. If the two arbitrators cannot agree on the chief arbitrator or “Chair” of the arbitral tribunal within 7 calendar days, the chief arbitrator or “Chair” of the arbitral tribunal shall be appointed by Lextar.
Rule 22. Direct Appointment by a Party
(a) If the agreement of the parties names an arbitrator or specifies a method of appointing an arbitrator, that designation or method shall be followed. If a party selects an arbitrator for appointment, it shall file the name, address, telephone number, and email address of the arbitrator with Lextar. Upon the request of any appointing party, Lextar shall submit a list of members of its Roster of Arbitrators from which the party may, if it so desires, make the appointment.
(b) Where the parties have agreed that each party is to name one arbitrator, the arbitrators so named must meet the standards of Rule 21 with respect to impartiality and independence unless the parties have specifically agreed that the party-appointed arbitrators are to be non-neutral and need not meet those standards.
(c) If the agreement specifies a period of time within which an arbitrator shall be appointed and any party fails to make the appointment within that period, Lextar shall make the appointment.
(d) If no period of time is specified in the agreement, Lextar shall notify the party to make the appointment. If within 7 calendar days after such notice has been sent, an arbitrator has not been appointed by a party, Lextar shall make the appointment.
Rule 23. Challenge and Disqualification of Arbitrator
(a) Any party may challenge the arbitrator appointed by Lextar if circumstances exist that give rise to justifiable doubts as to the arbitrator’s impartiality or independence. However, a party may challenge its own appointed arbitrator only for reasons of which it becomes aware after the appointment has been made.
(b) A party may challenge an arbitrator only on one of the following grounds:
(1) Circumstances exist that may give rise to a reasonable apprehension of bias.
(2) The arbitrator does not possess the qualifications that the parties have agreed are necessary.
(c) No party may challenge the arbitrator appointed by Lextar if it has failed to make the challenge within 5 calendar days of receiving notice of the appointment unless such party could not be reasonably aware of the circumstances as mentioned in the preceding sub-paragraph.
Rule 24. Procedures for Challenging the Arbitrator
(a) A party who wishes to challenge an arbitrator shall send to Lextar a statement of grounds for the challenge, within 5 days of becoming aware of them.
(b) The other parties may agree to remove the challenged arbitrator, or the arbitrator may voluntarily resign.
(c) If the challenged arbitrator is not removed by the parties and does not resign, shall decide the issue within 5 calendar days of receiving the challenge and notify the parties of its decision. Lextar’s decision shall be final.
(d) If the challenged arbitrator voluntarily resigns or is removed by Lextar upon the mutual agreement of the parties concerned, a substitute arbitrator shall be appointed by Lextar within 7 calendar days.
(e) While an application is pending, the arbitral tribunal, including the challenged arbitrator, may continue the arbitration and make an award, unless Lextar decides otherwise.
Rule 25. Duty of Arbitrator(s)
(a) An arbitrator shall be independent of the parties and shall act impartially.
(b) Before accepting an appointment as arbitrator, a person shall disclose to all parties to the arbitration any circumstances of which he or she is aware that may give rise to a reasonable apprehension of bias.
(c) This duty does not apply to the arbitrators that are directly appointed by the parties according to Rule 22 above.
Rule 26. Disclosure by Arbitrator
(a) Any person appointed or to be appointed as an arbitrator, as well as the parties and their representatives, shall disclose to Lextar any circumstance likely to give rise to justifiable doubt as to the arbitrator’s impartiality or independence, including any bias or any financial or personal interest in the result of the arbitration or any past or present relationship with the parties or their representatives. Such obligation shall remain in effect throughout the arbitration.
(b) Upon receipt of such information from the arbitrator or another source, Lextar shall communicate the information to the parties and, if it deems it appropriate to do so, to the arbitrator and others.
(c) Disclosure of information pursuant to this Rule regarding disclosure is not an indication that the arbitrator considers the disclosed circumstance will likely affect his or her impartiality or independence.
Rule 27. Communication with Tribunal
No party and no one acting on behalf of any party shall communicate ex parte with the tribunal or a candidate for arbitrator concerning the arbitration, except that a party, or someone acting on behalf of a party, may communicate ex parte with a candidate for direct appointment pursuant to Rule 22 in order to advise the candidate of the general nature of the controversy and of the anticipated proceedings and to discuss the candidate’s qualifications, availability, or independence in relation to the parties or to discuss the suitability of candidates for selection as a third arbitrator where the parties or party-designated arbitrators are to participate in that selection.
Rule 28. Vacancies
(a) If, for any reason, an arbitrator is unable or unwilling to perform the duties of office, or an arbitrator voluntarily resigns or is removed according to Rule 23 and Rule 24 above, Lextar may, on proof satisfactory to it, declare the office vacant. Vacancies shall be filled in accordance with the applicable provisions of these Rules.
(b) In the event of a vacancy in a tribunal of neutral arbitrators after the hearings have commenced, the remaining arbitrator or arbitrators may continue with the hearing and determination of the controversy, unless the parties agree otherwise.
(c) In the event of the appointment of a substitute arbitrator, the tribunal of arbitrators shall determine in its sole discretion whether it is necessary to repeat all or part of any prior hearings.
Rule 29. Preliminary Hearing
(a) At the discretion of the tribunal, and depending on the size and complexity of the arbitration, a preliminary hearing should be scheduled as soon as practicable after the tribunal has been appointed. The parties should be invited to attend the preliminary hearing along with their representatives. The preliminary hearing may be conducted in person, by video conference, or by telephone.
(b) At the preliminary hearing, the parties and the tribunal should be prepared to discuss and establish a procedure for the conduct of the arbitration that is appropriate to achieve a fair, efficient, and economical resolution of the dispute.
(c) Hearings are generally conducted via video conferencing. However, upon request by any party and agreement by the other party, an in-person hearing will be arranged at an arbitration room closest to the requesting party. The requesting party is responsible for the costs of the arbitration room and any associated expenses, except for travel, lodging, and food, which are to be borne by the parties individually.
(d) If both parties request an in-person hearing but cannot agree on the venue of hearing, the venue should be determined by the tribunal at its discretion. The tribunal may make decisions regarding the costs and expenses of the hearing.
Rule 30. Exchange of Documents and Production of Information
(a) The tribunal may, on application of a party or on its own initiative:
(1) require the parties to exchange documents in their possession or custody on which they intend to rely;
(2) require the parties to update their exchanged documents on which they intend to rely as such documents become known to them;
(3) require the parties, in response to reasonable document requests, to make available to the other party documents in the responding party’s possession or custody, not otherwise readily available to the party seeking the documents, and reasonably believed by the party seeking the documents to exist and to be relevant and material to the outcome of disputed issues; and
(4) require the parties, when documents to be exchanged or produced are maintained in electronic form, to make such documents available in the form most convenient and economical for the party in possession of such documents, unless the tribunal determines that there is good cause for requiring the documents to be produced in a different form. The parties should attempt to agree in advance upon, and the tribunal may determine, reasonable search parameters to balance the need for production of electronically stored documents relevant and material to the outcome of disputed issues against the cost of locating and producing them.
(b) If the party to whom a request to produce documents or information is delivered objects to producing some or all of the requested documents, it must state its objection in writing to the tribunal and the other parties. The following justifies non-production:
(1) lack of sufficient relevance to the case or materiality to its outcome;
(2) legal impediment or privilege under the legal or ethical rules the tribunal determines apply;
(3) unreasonable burden to produce the requested documents;
(4) loss or destruction of the document(s);
(5) commercial or technical confidentiality;
(6) special political or institutional sensitivity (including those documents that have been classified as secret by a government or a public international institution);
(7) considerations of procedural economy, proportionality, fairness, or equality of the parties; or
(8) not satisfying a requirement of Sub-rule (a) herein.
(c) A party may ask the tribunal to rule on an objection. The tribunal must, in consultation with the parties, consider the request to produce and the objection. The tribunal may order the party to whom the request to produce was delivered to produce the documents in its possession, custody, or control if the tribunal determines:
(1) the issues the requesting party wants to prove are relevant to the case and material to its outcome;
(2) none of the reasons for objection under Sub-rule (b) herein applies; and
(3) the request to produce satisfies the requirements of Sub-rule (a) herein.
(d) Documents that the tribunal orders to be produced must be delivered to the other parties and to the tribunal, if the tribunal orders it.
(e) If an objection can be determined only by reviewing a document, in exceptional circumstances the tribunal may decide that it should not review the document. In that event, the tribunal may, after consulting with the parties, appoint an independent and impartial expert, bound to confidentiality, to review the document and report to the tribunal on the objection. If the tribunal upholds the objection, the expert must not disclose to the tribunal and to the other parties the contents of the reviewed document.
(f) If a party wants to obtain documents from a person or organization that is not a party to the arbitration and from whom the party cannot obtain the documents on its own, the party may:
(1) ask the tribunal to take whatever steps are legally available to obtain the requested documents; or
(2) seek leave from the tribunal to take the steps itself.
(g) The party must deliver its request to the tribunal and to the other parties in writing, and must satisfy the applicable requirements of Rule 30(a).
(h) The tribunal must decide on the request and take, authorize the requesting party to take, or order another party to take, steps the tribunal considers appropriate if it determines that:
(1) the documents are relevant to the case and material to its outcome;
(2) the applicable requirements of Sub-rule (a) herein have been satisfied; and
(3) none of the reasons for objection set out in Sub-rule (b) applies.
(i) When the parties produce documents or introduce them into evidence, the following applies:
(1) copies of documents must match the originals and, if the tribunal requests, a party must present originals for inspection;
(2) electronic documents must be produced or introduced in their most convenient or economical form; and
(3) a party need not deliver multiple copies of documents that are essentially identical unless the tribunal orders otherwise.
Rule 31. Enforcement Powers of Tribunal
(a) The tribunal shall manage any necessary exchange of information among the parties with a view to achieving an efficient and economical resolution of the dispute, while at the same time promoting equality of treatment and safeguarding each party’s opportunity to fairly present its claims and defenses.
(b) The arbitrator shall have the authority to issue any orders necessary to enforce the provisions of Rule 30 and Rule 31 as mentioned above and any other rule or procedure and to otherwise achieve a fair, efficient and economical resolution of the case, including, without limitation:
(1) conditioning any exchange or production of confidential documents and information, and the admission of confidential evidence at the hearing, on appropriate orders to preserve such confidentiality;
(2) imposing reasonable search parameters for electronic and other documents if the parties are unable to agree;
(3) allocating costs of producing documentation, including electronically stored documentation;
(4) in the case of willful non-compliance with any order issued by the arbitrator, drawing adverse inferences, excluding evidence and other submissions, and/or making special allocations of costs or an interim award of costs arising from such non-compliance; and
(5) issuing any other enforcement orders which the arbitrator is empowered to issue under applicable law.
Rule 32. Date, Time, Place, and Method of Hearing
(a) The tribunal shall set the date, time, place, and method (including video, audio or other electronic means when appropriate) for each hearing. The parties shall respond to requests for hearing dates in a timely manner, be cooperative in scheduling the earliest practicable date, and adhere to the established hearing schedule. Lextar shall send a notice of hearing to the parties at least 10 calendar days in advance of the hearing date, unless otherwise agreed by the parties.
(b) The arbitrator has the discretion to determine the most effective, convenient, and economical method for conducting the hearing. Disputes with clear facts and relatively small claims may be resolved through written submissions, unless one of the parties objects. For all other hearings, video conferencing may be used when feasible, unless one or more parties request otherwise.
Rule 33. Attendance at Hearing
(a) Any person having a direct interest in the arbitration is entitled to attend hearings. The tribunal shall otherwise have the power to require the exclusion of any witness, other than a party or other essential person, during the testimony of any other witness.
(b) It shall be discretionary with the tribunal to determine the propriety of the attendance of any other person.
Rule 34. Representation
(a) Any party may participate without representation (pro se), or by counsel or any other representative of the party’s choosing, unless such choice is prohibited by applicable law.
(b) A party intending to be so represented shall notify the other party and Lextar of the name, telephone number and address, and email address, of the representative at least 7 calendar days prior to the date set for the hearing at which that person is first to appear. When such a representative initiates an arbitration or responds for a party, notice is deemed to have been given.
Rule 35. Oaths Required before First Hearing
(a) Before proceeding with the first hearing, each arbitrator may take an oath of office and, if required by law, shall do so.
(b) The arbitrator may require witnesses to testify under oath administered by any duly qualified person and, if it is required by law or requested by any party, shall do so.
Rule 36. Official Record of Proceedings
(a) Any party desiring a transcribed record of a hearing shall make arrangements directly with a transcriber or transcription service and shall notify the tribunal and the other parties of these arrangements at least 7 calendar days in advance of the hearing. The requesting party or parties shall be responsible for the cost of the record.
(b) No other means of recording any proceeding will be permitted absent the agreement of the parties or per the direction of the tribunal.
(c) If the transcript or any other recording is agreed by the parties or determined by the tribunal to be the official record of the proceeding, it must be provided to the arbitrator and made available to the other parties at the direction of the tribunal.
(d) The tribunal may resolve any disputes with regard to apportionment of the costs of the transcription or other recording.
Rule 37. Translation
(a) Any party who needs the services of an interpreter during a hearing proceeding shall make all arrangements directly with the interpreter and shall assume the costs of the service.
(b) If the party who uses the services of an interpreter shall ensure the accuracy of the translation. For purposes of defining the accuracy of the translation, the interpreter is supposed to be certified by a professional organization of translators and interpreters or with other persuasive proof of competence acceptable to the tribunal.
Rule 38. Postponements
The tribunal may postpone any hearing upon agreement of the parties, upon request of a party for good cause shown, or upon its own initiative.
Rule 39. Arbitration in the Absence of a Party or Representative
(a) Unless the law provides to the contrary, the arbitration may proceed in the absence of any party or representative who, after due notice, fails to be present or fails to obtain a postponement.
(b) An award shall not be made solely on the default of a party. The tribunal shall require the party who is present to submit such evidence as the tribunal may require for the making of an award.
Rule 40. Conduct of Proceedings
(a) The claimant shall present evidence to support its claim. The respondent shall then present evidence to support its defense. Witnesses for each party shall also submit to questions from the arbitrator and the adverse party. The tribunal has the discretion to vary this procedure, provided that the parties are treated with equality and that each party has the right to be heard and is given a fair opportunity to present its case.
(b) The tribunal, exercising its discretion, shall conduct the proceedings with a view to expediting the resolution of the dispute and may direct the order of proof, bifurcate proceedings and direct the parties to focus their presentations on issues the decision of which could dispose of all or part of the case.
(c) The tribunal may also allow for some or all of the presentation of evidence by alternative means including video, audio or other electronic means other than an in-person presentation. Such alternative means must afford a full opportunity for all parties to present any evidence that the tribunal deems material and relevant to the resolution of the dispute and, when involving witnesses, provide an opportunity for cross-examination.
(d) The parties may agree to waive oral hearings in any case and may also agree to utilize the Procedures for Resolution of Disputes Through Document Submission as provided for in EP Rule 6.
Rule 41. Dispositive Motions
(a) The tribunal may allow the filing of and make rulings upon a dispositive motion only if it determines that the moving party has shown that the motion is likely to succeed and to dispose of or narrow the issues in the case.
(b) Consistent with the goal of achieving an efficient and economical resolution of the dispute, the tribunal shall consider the time and cost associated with the briefing of a dispositive motion in deciding whether to allow any such motion.
(c) Fees, expenses, and compensation associated with a motion or an application to make a motion may be assessed as provided for in Rule 56 regarding the scope of award.
Rule 42. Evidence
(a) The parties may offer such evidence as is relevant and material to the dispute and shall produce such evidence as the tribunal may deem necessary to an understanding and determination of the dispute. Conformity to legal rules of evidence is not necessary. All evidence shall be taken in the presence of all of the tribunal and all of the parties, except where any of the parties is absent, in default, or has waived the right to be present.
(b) The tribunal shall determine the admissibility, relevance, and materiality of the evidence offered and may exclude evidence deemed by the tribunal to be cumulative or irrelevant.
(c) The tribunal shall take into account applicable principles of legal privilege, such as those involving the confidentiality of communications between a lawyer and client.
(d) An arbitrator or other person authorized by law to subpoena witnesses or documents may do so upon the request of any party or independently.
Rule 43. Evidence by Written Statements and Post-Hearing Filing of Documents or Other Evidence
(a) At a date agreed upon by the parties or ordered by the tribunal, the parties shall give written notice for any witness or expert witness who has provided a written witness statement to appear in person at the arbitration hearing for examination. If such notice is given, and the witness fails to appear, the tribunal may disregard the written witness statement and/or expert report of the witness or make such other order as the tribunal may consider to be just and reasonable.
(b) If a witness whose testimony is represented by a party to be essential is unable or unwilling to testify at the hearing, either in person or through electronic or other means, either party may request that the tribunal order the witness to appear in person for examination before the tribunal at a time and location where the witness is willing and able to appear voluntarily or can legally be compelled to do so. Any such order may be conditioned upon payment by the requesting party of all reasonable costs associated with such examination.
(c) If the parties agree or the tribunal directs that documents or other evidence be submitted to the tribunal after the hearing, the documents or other evidence shall be filed with Lextar for transmission to the tribunal. All parties shall be afforded an opportunity to examine and respond to such documents or other evidence.
Rule 44. Inspection or Investigation
(a) In case the tribunal finds it necessary to make an inspection or investigation in connection with the arbitration, it shall direct Lextar to so advise the parties.
(b) The tribunal shall set the date and time and Lextar shall notify the parties. Any party who so desires may be present at such an inspection or investigation. In the event that one or all parties are not present at the inspection or investigation, the tribunal shall make an oral or written report to the parties and afford them an opportunity to comment.
Rule 45. Interim Measures
(a) The tribunal may take whatever interim measures it deems necessary, including injunctive relief and measures for the protection or conservation of property and disposition of perishable goods.
(b) Such interim measures may take the form of an interim award, and the tribunal may require security for the costs of such measures.
(c) A request for interim measures addressed by a party to a judicial authority shall not be deemed incompatible with the agreement to arbitrate or a waiver of the right to arbitrate.
Rule 46. Emergency Measures of Protection
(a) Unless the parties agree otherwise, the provisions of this Rule shall apply to the arbitrations conducted under the arbitration clauses or agreements entered on or after January 1, 2015. This Rule shall not apply to cases administered pursuant to the Expedited Procedures.
(b) A party in need of emergency relief prior to the constitution of the tribunal shall notify Lextar and all other parties in writing of the nature of the relief sought and the reasons why such relief is required on an emergency basis. The application shall also set forth the reasons why the party is entitled to such relief. Such notice may be given by email or other reliable means, but must include a statement certifying that all other parties have been notified or an explanation of the steps taken in good faith to notify other parties.
(c) Within one business day of receipt of notice from Lextar initiating the request referenced in subparagraph (b), Lextar shall appoint a single emergency arbitrator designated to rule on emergency applications. The emergency arbitrator shall expeditiously disclose any circumstance likely, on the basis of the facts disclosed on the application, to affect such arbitrator’s impartiality or independence. Any challenge to the appointment of the emergency arbitrator must be made within one business day of the communication by Lextar to the parties of the appointment of the emergency arbitrator and the circumstances disclosed.
(d) The emergency arbitrator shall, as soon as possible, but in any event within two business days of appointment, establish a schedule for consideration of the application for emergency relief. Such a schedule shall provide a reasonable opportunity to all parties to be heard, but may provide for proceeding by telephone or video conference or on written submissions as alternatives to a formal hearing. The emergency arbitrator shall have the authority vested in the tribunal under Rule 12, including the authority to rule on her or his own jurisdiction, and shall resolve any disputes over the applicability of this specific Rule.
(e) If, after consideration, the emergency arbitrator is satisfied that the party seeking the emergency relief has shown that immediate and irreparable loss or damage shall result in the absence of emergency relief, and that such party is entitled to such relief under applicable law, the emergency arbitrator may enter an interim order or award granting the relief and stating the reason therefore.
(f) Any application to modify an interim award of emergency relief must be based on changed circumstances and may be made to the emergency arbitrator until the non-emergency (“merits”) arbitrator is appointed; thereafter such a request shall be addressed to the merits arbitrator. The emergency arbitrator shall have no further power to act after the merits arbitrator is appointed unless the emergency arbitrator is named as the merits arbitrator or as a member of the tribunal.
(g) Any interim award of emergency relief may be conditioned on provision by the party seeking such relief for appropriate security.
(h) A request for interim measures addressed by a party to a judicial authority shall not be deemed incompatible with this Rule, the agreement to arbitrate or a waiver of the right to arbitrate. If Lextar is directed by a judicial authority to nominate a special master to consider and report on an application for emergency relief, Lextar shall proceed as provided in this Rule, and the references to the emergency arbitrator shall be read to mean the special master, except that the special master shall issue a report rather than an interim award.
(i) The costs associated with an application for emergency relief shall initially be apportioned by the emergency arbitrator or special master, subject to the power of the merits arbitrator to determine finally the apportionment of such costs. The emergency arbitrator may take into consideration whether the request for emergency relief was made in good faith.
Rule 47. Closing of Hearing
(a) The tribunal shall specifically inquire of all parties whether they have any further proofs to offer or witnesses to be heard. Upon receiving negative replies or if satisfied that the record is complete, the tribunal shall declare the hearing closed.
(b) If documents or responses are to be filed as provided in Rule 30 above, or if briefs are to be filed, the hearing shall be declared closed as of the date the tribunal is satisfied that the record is complete, and such date shall occur no later than 7 calendar days from the date of receipt of the last such submissions or hearing transcript.
(c) The time limit within which the tribunal is required to make the award shall commence, in the absence of other agreements by the parties, upon the closing of the hearing. Lextar may extend the time limit for the rendering of the award only in unusual and extreme circumstances.
Rule 48. Reopening of Hearing
The hearing may be reopened on the tribunal’s initiative, or by the direction of the tribunal upon application of a party, at any time before the award is made. If reopening the hearing would prevent the making of the award within the specific time agreed to by the parties in the arbitration agreement, the matter may not be reopened unless the parties agree to an extension of time. When no specific date is fixed by agreement of the parties, the tribunal shall have 60 calendar days from the closing of the reopened hearing within which to make an award, or 14 calendar days if the case is governed by the Expedited Procedures.
Rule 49. Waiver of Right to Object
Any party who proceeds with the arbitration after knowledge that any provision or requirement of these Rules has not been complied with and who fails to state an objection in writing shall be deemed to have waived the right to object.
Rule 50. Extensions of Time
The parties may modify by mutual agreement any period of time established by these Rules or the parties’ arbitration agreement. Lextar or the arbitrator may for good cause extend any period of time established by these Rules, except the time for making the award. Any such extensions shall be notified by Lextar to all parties.
Rule 51. Serving of Notice and Communications
(a) The service methods set forth in Rule 7 regarding personal service may also be used for the delivery of any filing, notice or communication throughout the course of the arbitration proceeding.
(b) Lextar, the tribunal, and the parties may also use alternative methods of communication or other platforms as directed by Lextar or as agreed to by the parties or directed by the tribunal to exchange any communication or other notice required by these Rules during the course of the arbitration.
(c) Unless otherwise instructed by Lextar or by the tribunal, any party submitting any document or written communication to another party, Lextar or the tribunal, shall simultaneously provide that material to all other participants, including Lextar.
(d) Failure to provide the other party with copies of communications provided to Lextar or the tribunal may prevent Lextar or the tribunal from acting on any requests or objections contained therein.
(e) Lextar may direct that any oral or written communications sent by a party or their representative shall be sent in a particular manner. The failure of a party or their representative to comply with any such direction may result in Lextar’s refusal to consider the issue raised in the communication.
(f) Lextar may initiate administrative communications with the parties or their representatives either jointly or individually.
(g) Any method of service on or notice to a party must be made in such a manner to provide that party with reasonable opportunity to be heard with regard to the dispute.
Rule 52. Confidentiality
(a) Unless otherwise required by applicable law, court order, or the parties’ agreement, Lextar and the appointed arbitrators shall keep confidential all matters relating to the arbitration or the award.
(b) Upon the agreement of the parties or the request of any party, the tribunal may make orders concerning the confidentiality of the arbitration proceedings or of any other matters in connection with the arbitration and may take measures for protecting trade secrets, personal privacy and other confidential information.
(c) Lextar does not keep case files permanently; instead, Lextar will destroy all files of the cases that have been closed six months after closing.
Rule 53. Majority Decision
(a) When the tribunal consists of more than one arbitrator, unless required by law or by the arbitration agreement or section (b) of this Rule, all decisions must be made by a majority of the arbitrators.
(b) Where there is a tribunal of three arbitrators, absent an objection of a party or another member of the tribunal, the chief arbitrator of the tribunal is authorized to resolve any disputes related to the exchange of information or procedural matters without the need to consult the full tribunal.
(c) Absent an objection of a party or another member of the tribunal, the chief arbitrator may sign any order on behalf of the tribunal.
Rule 54. Time of Award
The award shall be made promptly by the tribunal and, unless otherwise agreed to by the parties or specified by law, no later than 60 calendar days from the date of closing the hearing, or, if oral hearings have been waived, from the due date set for receipt of the parties’ final statements and proofs.
Rule 55. Form of Award
(a) Any award shall be in writing and signed by a majority of the arbitrators. Signatures may be executed in electronic or digital form. The award shall be executed in the form and manner required by law.
(b) The tribunal need not render a reasoned award unless the parties request such an award in writing prior to appointment of the arbitrator(s) or unless the tribunal determines that a reasoned award is more appropriate.
Rule 56. Scope of Award
(a) The tribunal may, in an award, grant any remedy or relief that the arbitrator deems just and equitable and within the scope of the agreement of the parties, including, but not limited to, the following:
(1) make provision for interim measures of protection, including payment of security for costs, posting of security for the amount claimed, or preservation of property that is the subject matter of the dispute;
(2) grant equitable relief, injunctions, or/and specific performance;
(3) grant any other relief these Rules allow.
(b) The tribunal must make all final awards within 60 days after:
(1) all required fees and expenses are paid; and
(2) the hearings have been closed, whichever is later, or in another time period the parties agree to in writing or a court directs.
(c) In addition to a final award, the tribunal may make other decisions, including interim, interlocutory, or partial rulings, orders, and awards. In any interim, interlocutory, or partial award, the arbitrator may assess and apportion the fees, expenses, and compensation related to such award as the tribunal determines is appropriate.
(d) The award of the tribunal may also include:
(1) interest at such rate and from such date as the tribunal may deem appropriate; and
(2) an award of attorneys’ fees if all parties have requested such an award or it is authorized by law or the parties’ arbitration agreement.
Rule 57. Award Upon Settlement – Consent Award
(a) If the parties settle their dispute during the course of the arbitration and if the parties so request, the tribunal may set forth the terms of the settlement in a “consent award.” A consent award must include an allocation of arbitration costs, including administrative fees and expenses as well as arbitrator fees and expenses as set forth in Rule 56(c).
(b) The consent award shall not be released to the parties until all administrative fees and all arbitrator compensation have been paid in full.
Rule 58. Delivery of Award to Parties
(a) The tribunal shall send a copy of the final award to Lextar for confirmation before the award is delivered to the parties concerned.
(b) The award in respect of arbitration costs, including administrative costs and expenses, shall not contravene the fee charging policies of Lextar. In the case of any contraventions, they must be corrected by the tribunal before delivery of the award.
(c) Parties shall accept as notice and delivery of the award the placing of the award or a true copy thereof in the mail addressed to the parties or their representatives at their last known addresses, personal or electronic service of the award, or the filing of the award in any other manner that is permitted by law.
Rule 59. Modification of Award
(a) A tribunal may, on application or its own initiative, amend or vary an award, ruling, order, or decision to correct:
(1) a clerical or typographical error;
(2) an error, slip, omission or other similar mistake; or
(3) an arithmetical error.
(b) A party may apply to amend or vary an award, ruling, order, or decision only within 10 calendar days after delivery of the award, ruling, order, or decision.
(c) If the tribunal has established a different schedule for such requests, responses, and disposition, the tribunal’s schedule will supersede the deadlines set forth in this Rule.
(d) The tribunal must not amend or vary an award, ruling, order, or decision more than 10 days after delivery of the award, ruling, order, or decision unless the parties agree otherwise.
(e) A party may apply to the tribunal for clarification of an award, ruling, order, or decision only within 10 days after delivery of the award, ruling, order, or decision. Any clarification the tribunal issues becomes part of the award, ruling, order, or decision.
(f) A party may apply to the tribunal to make an additional award for claims presented in the proceedings but omitted from the award only within 30 days after delivery of an award.
(g) The tribunal must deliver any amended, varied, or additional award, ruling, order, or decision to Lextar.
(h) Unless agreed otherwise and allowed by law:
(1) an award of the tribunal is final and binding; and
(2) there is no appeal from an award, ruling, order, or decision of the tribunal.
Rule 60. Release of Documents for Judicial Proceedings
Lextar may, upon the written request of a party to the arbitration, furnish to the party, at its expense, copies or certified copies of any papers in Lextar’s possession that are not determined by Lextar to be privileged or confidential.
Rule 61. Applications to Court and Exclusion of Liability
(a) No judicial proceeding by a party relating to the subject matter of the arbitration shall be deemed a waiver of the party’s right to arbitrate.
(b) Neither Lextar nor any arbitrator in a proceeding under these Rules is a necessary or proper party in any judicial proceedings relating to the arbitration or any other services provided by Lextar.
(c) Parties to an arbitration under these Rules shall be deemed to have consented that judgment upon the arbitration award may be entered in any federal or state court having jurisdiction thereof.
(d) Parties to an arbitration under these Rules shall be deemed to have consented that Lextar shall not be liable to any party in any action for any damages, or injunctive or other relief, for any act or omission in connection with any arbitration administered in whole or in part by Lextar or conducted under these Rules. Parties shall also be deemed to have consented that the arbitrator(s) shall not be liable to any party in any action for damages, or injunctive or other relief, for an act or omission in connection with any arbitration administered in whole or in part by Lextar.
(e) Parties to an arbitration under these Rules may not call the arbitrator, Lextar, or any Lextar employee as a witness in litigation or any other proceeding relating to the arbitration. The arbitrator, Lextar and Lextar employees are not competent to testify as witnesses in any such proceeding.
Rule 62. Administrative Fees
(a) As an alternative dispute resolution organization, Lextar shall prescribe administrative fees to compensate for the costs of providing administrative services. The fee schedule in effect when a Request for Arbitration or a Submission to Arbitration is filed will apply throughout the pendency of the case.
(b) The administrative fees shall be paid initially by the party or parties making a claim or counterclaim, subject to final apportionment by the arbitrator in the award.
(c) Lextar may, in the event of extreme hardship on the part of any party, defer or reduce the administrative fees, in its complete discretion.
Rule 63. Expenses
(a) The expenses of witnesses for either side shall be paid by the party producing such witnesses.
(b) All other expenses of the arbitration, including required travel and other expenses of the arbitrator, Lextar representatives, and any witness and the cost of any proof produced at the direct request of the arbitrator, shall be borne equally by the parties, unless they agree otherwise or unless the arbitrator in the award assesses such expenses or any part thereof against any specified party or parties.
Rule 64. Neutral Arbitrator’s Compensation
(a) Arbitrators shall be compensated at a rate consistent with the arbitrator’s stated rate of compensation at the time their Lextar resume is presented to the parties for consideration pursuant to Rule 21 for appointment of arbitrator, unless otherwise determined by Lextar. Such compensation will be consistent with the provisions of the arbitrator’s executed Notice of Compensation Arrangements.
(b) If there is disagreement concerning the terms of compensation, an appropriate rate shall be established with the arbitrator by Lextar and confirmed to the parties.
(c) Any arrangement for the compensation of a neutral arbitrator shall be made through Lextar and not directly between the parties and the arbitrator.
Rule 65. Deposits
(a) Lextar will require the parties to deposit in advance of any hearings such sums of money as it deems necessary to cover the expense of the arbitration, including the arbitrator’s compensation and expenses, if any, and shall render an accounting to the parties and return any unexpended balance at the conclusion of the case. A party’s failure to make the requested deposits by the date established by Lextar may result in Lextar’s or the arbitrator’s taking any appropriate steps as set forth in Rule 66.
(b) Other than in cases where the arbitrator serves for a flat fee, deposit amounts requested will be based on estimates provided by the arbitrator. The arbitrator will determine the estimated amount of deposits using the information provided by the parties with respect to the complexity of each case.
(c) Lextar shall request from the arbitrator an itemization or explanation for the arbitrator’s request for deposits.
(d) Lextar will allocate the deposits requested among the parties and will establish due dates for the collection of those deposits.
Rule 66. Remedies for Nonpayment
(a) If arbitrator compensation or expenses or Lextar’s administrative fees have not been paid in full, Lextar may so inform the parties so that one of them may advance the required payment.
(b) Upon receipt of information from Lextar that payment for administrative fees or deposits for arbitrator compensation or any expense have not been paid in full, to the extent the law allows, a party may request that the arbitrator take specific measures relating to a party’s non-payment. Such measures may include, but are not limited to:
(1) limiting a party’s ability to assert or pursue its claim, and
(2) prohibiting the non-paying party from filing any motion.
(c) In no event, however, shall a party be precluded from defending a claim or counterclaim.
(d) The arbitrator must provide the party opposing a request for such measures with the opportunity to respond prior to making any ruling regarding the same.
(e) In the event that the arbitrator grants any request for relief which limits any party’s participation in the arbitration, the arbitrator shall require the party who is making a claim and who has made appropriate payments to submit such evidence as the arbitrator may require for the making of an award.
(f) Upon receipt of information from Lextar that full payments have not been received, the arbitrator, on the arbitrator’s own initiative or at the request of Lextar or a party, may order suspension of the arbitration. If no arbitrator has yet been appointed, Lextar may suspend the proceedings.
(g) If the arbitration has been suspended by either Lextar or the arbitrator and the parties have failed to make the full payments requested within the time provided after the suspension, the arbitrator, or Lextar if an arbitrator has not been appointed, may terminate the proceedings.
Rule 67. Sanctions
(a) The arbitrator may, upon a party’s request, order appropriate sanctions where a party fails to comply with its obligations under these Rules or with an order of the arbitrator. In the event that the arbitrator enters a sanction that limits any party’s participation in the arbitration or results in an adverse determination of an issue or issues, the arbitrator shall explain that order in writing and shall require the submission of evidence and legal argument prior to making an award. The arbitrator may not enter a default award as a sanction.
(b) The arbitrator must provide a party that is subject to a sanction request with an opportunity to respond prior to making any determination regarding the sanctions application.
Rule 68. Miscellaneous Provisions
(a) The dollar amounts as mentioned in these Rules are denominated in the country where the arbitration is conducted. In the country of Canada, the denomination is Canadian dollars and, the United States, US dollars. In the case of any other country, the domination is US dollars unless it is specified.
(b) The terms “arbitrator” and “tribunal” are used interchangeably in contexts in which the tribunal is composed of a sole arbitrator and other contexts in which they mean the same.
(c) The applicable law regarding arbitration means the law of the country, state or province where the arbitration is conducted. In the case of arbitrating international disputes, the applicable law may include international treaties, agreements and conventions to which the countries the parties reside or the parties are registered as a business are a signatory.
(d) In these Rules, in the calculation of time, the first day shall be excluded and the last day included. If the last day of a time period or the day of expiry as mentioned in these Rules falls on a weekend or a public holiday in the jurisdiction of the party subject to the deadline, the first business day following the weekend or public holiday shall be the last day of the time period or the day or expiry.