Arbitration FAQ

What is Court-Annexed Arbitration?

 Court-Annexed Arbitration is an alternate way to resolve civil cases that have a demand for damages of  $150,000 or less, without going to trial. When an action is commenced in the Eastern District, there is a Civil Cover Sheet (JS 44) that is submitted with the Complaint before a docket number is assigned. On the back of the Civil Cover Sheet, there is an Arbitration Certification that is only filled out by the party filing the complaint, if the damages exceed the $150,000 cap, exclusive of interest and costs. If this certification is not filled out, the case may be eligible for arbitration, subject to review by the Arbitration Clerk.

How do I know if my case is eligible for Arbitration?

 Under Local Rule 83.10 (d), the Clerk of the Court is authorized to designate and process all civil cases for compulsory arbitration if:

  • The damages do not exceed $150,000, exclusive of interest and costs; or
  • The parties consent to arbitration before the assigned Magistrate Judge, regardless of initial demand for money damages;

Cases that are not eligible for Arbitration include :

  • Money damages that exceed $150,000;
  • Pro Se cases
  • Social Security Cases;
  • Tax Matters;
  • Prisoner=s Civil Rights cases
  • Any action that is based on a violation of Constitutional Rights, or if jurisdiction is based  in or whole or part on Title 28 USC ' 1343 wherein money damages do not exceed $150,000, exclusive or interest and costs;
  • Cases that involve student loan defaults;
  • Cases that seek injunctive relief or if the relief sought is not monetary;
  • Cases where counsel for plaintiff files a certification with the court that the damages exceed the $150,000, exclusive of interests and costs; and
  • Cases where a counterclaim or a cross-claim is filed and the damages sought by such a claim, exceeds the $150,000 limit, exclusive of interest and costs.

Can a party request that their case be exempt for arbitration?

 Yes.  The court may, sua sponte, or on motion of a party, exempt any case from arbitration in which the objectives of arbitration would not be realized:

  • because the case involves complex or novel issues;
  • because legal issues predominate over factual issues; or
  • for other good cause.

The proper format and procedure to seek exemption from arbitration for the above-listed reasons, can be found under Local Rule 83.10 (e) (1).

How does the arbitration process begin?

 Once a case has been referred by the Magistrate Judge or designated for compulsory arbitration, the arbitration clerk sends out a Notice Designating Case to Arbitration to plaintiffs counsel.  Once the answer is filed, an arbitration hearing is set and notice is given to all counsel.  The arbitrator is selected at random, approximately one month before the arbitration hearing.  Counsel will be sent a copy of the Order Appointing Arbitrator that will include the name and contact information for the arbitrator.  Plaintiffs counsel must contact the arbitration department at least 24 hours in advance, or earlier, to confirm that the arbitration hearing will go forward on the date scheduled.

Where is the arbitration hearing held?

 Normally, the arbitration hearing is held in a conference room at the courthouse. The room is assigned by the arbitration clerk prior to the hearing.  At request and consent of all parties, including the arbitrator,  the hearing may be held at a more convenient location.  This must be confirmed by the arbitration clerk.  Any changes in location or schedules, continuances, or adjournments must be made promptly to the arbitration department.  If the arbitration hearing takes place at a location other than the courthouse, the parties must notify the arbitration clerk that the hearing went forward and the outcome of the same. If the parties have agreed upon a settlement, the arbitration clerk must be notified immediately. 

What happens after the arbitration hearing?

 After the hearing is held, the arbitrator files an arbitration award. This award is confidential and does not go in the court file.  Counsel will receive a copy of the award after it is filed with the court.  If any party disagrees with the arbitrator=s decision, then that party may file a Demand for Trial De Novo.  A filing fee of  $250.00 is required.  A trial de novo must be filed within (30) thirty days after the entry of the arbitration award.  If a demand for trial de novo is filed, the case will then be placed back on the trial calendar.  If no trial de novo is filed, the arbitration award becomes the final judgment of this court, without the right to appeal.