Effective March 1, 2024, the American Arbitration Association (AAA) has implemented noteworthy revisions to its Construction Industry Arbitration Rules and Mediation Procedures. These changes, designed to align with technological progress, streamline processes, and enhance clarity within the construction sector, carry significant implications.
The alterations focus on integrating current technologies, mandating email addresses instead of fax numbers. Rule R-23 has been updated to explicitly allow preliminary hearings via videoconference, in addition to other methods like telephone or in-person sessions. In Regular Track Procedures, Rule R-7 modifications address consolidation and joinder, stressing that such requests must precede the confirmation of the Merits Arbitrator appointment to prevent unforeseen delays.
Updates in arbitrator appointment procedures are prominent, with Rule R-14 clarifying the AAA’s authority to limit arbitrator strikes, while R-15 now specifies that party-appointed arbitrators must be on the AAA’s National Roster of Arbitrators unless mutually agreed otherwise.
These comprehensive changes also streamline arbitration proceedings, requiring arbitrators to consider the cost of dispositive motions before granting leave for filing, permitting arbitrators to issue confidentiality orders (R-45), and empowering arbitrators to impose sanctions with due process (R-60). Notably, the AAA raised the Fast Track Procedures ceiling from $100,000 to $150,000 and increased the threshold for Large, Complex Construction Disputes to $3 million for a three-arbitrator panel. Stakeholders should thoroughly acquaint themselves with these rule revisions for effective engagement in upcoming construction arbitration matters.
Contact Burkhalter Law for assistance on strategizing wisely to secure your financial legacy in 2024.
