FAQs for Administered Arbitration Rules (July 1,2013)

Why has CPR introduced Administered Arbitration Rules?

For over 30 years, top flight global lawyers have used CPR’s non –administered rules to resolve commercial disputes.  In response to users’ requests, CPR is now offering Administered Arbitration Rules for those requiring an administering authority.  As more worldwide companies sign CPR’s Corporate Policy Statement on Alternatives to Litigation and the 21st Century Corporate ADR Pledge, CPR has witnessed an increased demand for administered arbitration rules.  CPR’s Administered Arbitration Rules were drafted by users for users and offer the greatest degree of flexibility and control available, while minimizing overall costs. The new rules represent another option in the ADR toolbox for highly complex legal dispute cases.

Who Drafted the CPR Administered Arbitration Rules?

A subcommittee of CPR’s Arbitration Committee comprising leading corporate counsel, lawyers, academics and neutrals seeking to improve the quality of arbitration, drafted these rules.  They created them to offer the greatest degree of flexibility and control available, while minimizing overall costs, for those needing an administering authority.  CPR rules, non-administered and administered, were drafted by users for users and offer the greatest degree of flexibility and control available while minimizing overall costs.  

When are the Rules Effective?

The rules are effective July 1, 2013 for agreements entered into on that date or later.

What Is Unique about CPR’s Administered Arbitration Rules?

The rules are carefully tailored to only what parties need from an administering organization and no more.  They are built upon CPR’s experience with ad hoc/self-administered arbitration and parties’ requests for assistance.

Who Administers the Rules?

Experienced attorneys already on CPR staff will administer the cases out of CPR’s New York City offices.

What is the Difference between CPR’s Administered Arbitration and Non Administered Rules?  

The rules are substantially the same except for modifications related to CPR’s administrative role, which includes billing, selection of the arbitrator(s), ensuring the smooth interface between parties and Arbitrator/Tribunal, review of awards, and oversight to ensure the process occurs in a timely manner.  

What Types of Administered Arbitration Functions Does CPR Do?

CPR handles all billing and advances on costs with input from the Tribunal.  Any interest earned on advances is returned to parties in the event of a surplus. CPR makes sure that proceedings occur in a timely fashion, reviews awards for clerical, typographical and computational errors, and actively assists in neutral selection as needed.  To minimize unnecessary duplication of files, only electronic copies of filings and documents will be accepted by CPR.   

What does the Arbitrator Selection Process Look Like?

Only CPR has the final authority to appoint an arbitrator.  Parties can designate arbitrators for appointment from CPR’s Panel of Distinguished Neutrals or use other candidates. CPR then makes necessary inquiries of all arbitrator candidates for conflicts, availability and rates. All arbitrators must be independent and impartial. Objections will be decided by CPR. Arbitrator challenges will be determined under CPR’s Challenge Protocol (excluding its fee requirement).

What are the Tribunal’s Jurisdictional Powers?

The Tribunal has broad power to hear and determine challenges to its own jurisdiction. This reduces the need and delay caused by parties commencing a court action to determine issues relating to existence, scope or validity of the arbitration agreement. The Tribunal interfaces directly with parties on scheduling matters and advises CPR of the case status to streamline the process.

What Interim Measures of Protection are Available?

Interim relief is available under the rules. A Special Arbitrator may be appointed to issue orders relating to interim measures of relief prior to the appointment of the arbitrator(s). If parties opt to go to court for judicial interim relief, arbitration is not waived.

How is Confidentiality Handled?

Subject to applicable law, the parties, arbitrators and CPR will treat proceedings as confidential, unless parties agree otherwise, or except in connection with ancillary judicial proceedings. The Tribunal should resolve specific issues of confidentiality.  The Tribunal may issue orders to protect confidentiality of proprietary information, trade secrets and other sensitive information disclosed in discovery.

How are the Administered Arbitration Rules Efficient and Cost-Effective?  

The Rules empower the arbitrator or Tribunal to manage the proceeding firmly in order to complete the proceedings as economically and expeditiously as possible. CPR’s role as administrator will be kept to only those functions that are necessary. The administrative fee paid to CPR is based on the delivery of the final award by the Tribunal to CPR for review within 12 months after the Rule 9.3 Pre-hearing Conference.  Pursuant to Administered Rule 15.8, CPR must approve any scheduling order or extensions that would result in a final award being rendered more than 12 months after the initial pre-hearing conference required by Rule 9.3. When such approval is required, CPR may convene a call with parties and arbitrators to discuss factors relevant to request.  CPR may charge an additional administrative fee of $2,000 for each additional 6 month period.  

The rules can also be customized to fit the parties’ needs and offer a high degree of flexibility.  For instance, the parties can choose from numerous arbitrator selection options, including the innovative screened process for the appointment of party-appointed arbitrators.

Do the Administered Arbitration Rules Enable the Use of CPR’s Panels of Highly Distinguished Neutrals?

Yes.  CPR maintains an elite roster of highly-qualified arbitrators with specific experience in complex commercial matters. CPR neutrals are highly credentialed by CPR, both internally and by peer review committees, to ensure they possess superior qualifications.

Are Panelists Grouped by Specialty or Geographic Location?

  • CPR’s Global Panel contains neutrals located outside of the United States.
  • CPR's Cross Border Panel contains U.S.-based neutrals experienced in transnational or cross border disputes.
  • CPR's National Panel comprising CPR's most distinguished neutrals.
  • CPR’s U.S. Regional Panels contain highly-regarded leaders of the bench, bar and academia from major cities throughout the U.S. who are available to resolve complex business and public disputes nationwide.
  • CPR’s Specialized Panels are assembled in response to CPR member requests and currently focus on 20+ areas of expertise.  
Recognition by the courts: The CPR Panels roster has been used by the courts to identify special masters and as a resource for other public appointments.

How is a Neutral added to CPR's Panels?

CPR invites high-quality neutrals to apply to the Panel and reviews unsolicited applications received through the website here.  Admission to one of CPR Specialty Panels may also include review by a select panel of high-end users, peers and/or academics. Candidates are screened for their ADR expertise and training, and candidate references are asked to comment specifically on the applicant’s qualifications to serve on large complex commercial disputes. Qualification to the CPR roster is demanding and available openings are very limited.

Can Parties Use Non CPR Neutrals?


How Do CPR’s Administered Arbitration Rules Ensure Autonomy and Impartiality in Neutral Selection?

All arbitrators must be independent and impartial.  CPR will vet all candidates to ensure that they meet these qualifications. Parties can also employ a screened process for arbitrator selection, thus avoiding arbitrators knowing which party designated them.  CPR will provide a list of neutrals upon request.

How do I begin a Case?

Claimant sends its Notice of Arbitration to Respondent with an electronic copy to CPR and the $1,750 filing fee.  The commencement date is the date CPR is in receipt of the notice of arbitration and filing fee. CPR notifies Respondent of the deadline to file its Notice of Defense, which is 20 days after notification of Commencement Date (date on which CPR is in receipt of notice and filing fee). The Notice of Defense may include any counterclaim within the scope of arbitration clause. If a counterclaim is asserted, CPR notifies the Claimant of its response date, which is 20 days after receipt of counterclaim or as otherwise set by Tribunal. There is no separate filing fee for any counterclaim.

Does CPR Review the Award?  

CPR performs a limited review of format, clerical, typographical or computational errors, or any errors of a similar nature before delivering the award to the parties.

Who Determines the Arbitrator’s Fees and Advances?

Each arbitrator sets his or her own fee which is disclosed to the parties during the selection process. If there is disagreement concerning the arbitrator fees, an appropriate rate will be set by CPR and confirmed to parties. Compensation for each arbitrator will be fully disclosed to the Tribunal and parties. The Tribunal determines any necessary advances and advises CPR, which will invoice parties in equal shares (unless otherwise agreed).  CPR deposits advances with any surplus funds reverting to parties at the close of the proceedings.  

What are CPR’s fees?

CPR’s fees offer certainty and are user-friendly.  They consist of two components: (1) a nonrefundable filing fee of $1,750 (not applicable to counterclaim) and (2) a Flat Administrative Fee based on a scale of amounts in dispute; the fee is not a percentage of the amount in dispute. The Flat Administrative Fee is based on the award being rendered within 12 months after initial pre-hearing conference. An additional $2,000 fee may be charged for each additional 6 month period thereafter. 50% of CPR’s Administrative Fee is refunded for cases settled or withdrawn prior to the appointment of the Tribunal. After appointment, any refund is subject to CPR’s discretion.  CPR reserves the right to adjust the Administrative Fee based on developments in the proceeding, such as an increase in the amount in dispute.

Can the CPR Administered Arbitration Rules be Used for Cross-Border Disputes?