Legal Question in Business Law in California
Need answer from a California attorney regarding arbitration in this state.
We are a product development company with a disgruntled client and have to go into arbitration. We have no experience with arbitration. We would want whoever would conduct the arbitration to be someone who is somewhat experienced with and understands product development and contract law. Which would be the best arbitration board, arbitration group, etc. to pick for our arbitration? Thank you in advance. Alfred
3 Answers from Attorneys
The kind of arbitrator should be determined by the underlying agreement which requires arbitration. If the agreement is silent on that, then the parties will have to agree on the arbitrator or arbitrators. Depending on your kind of business, there may be many choices, but I would have to know more about your case to advise you further.
Your widest selection of arbitrators will be found with the American Arbitration Association and JAMS. I have been an arbitrator and mediator for a decade and I know of no group that specializes in product development, but if you select AAA or JAMS you should be able to find a panelist with product development expertise. Any decent arbitrator will be fully familiar with contract law.
First, look at the contract that obliges you firm to go into arbitration and see whether it specifies an arbitration tribunal or service. Many California contracts with arbitration clauses will specify that arbitration will be conducted by, and/or under the rules of, a particular organization, often the American Arbitration Association (AAA) or the Judicial Arbitration and Mediation Service (JAMS). Either one is fine; some lawyers prefer one or the other. In any case, you will probably have some opportunity to participate in selecting the individual arbitrator or, if more than one, the members of the arbitration panel. At minimum, you'll have an opportunity, as will the arbitrator, to check for conflicts of interest. At this point, your firm needs also to select an attorney to represent it -- although a decision to be self-represented in arbitration is possible, it is far preferable, and customary, to have a lawyer represent you throughout the process, including participation in selecting both the arbitration forum (AAA, JAMS or whatever) and the individual arbitrator(s).
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