FEDERAL AGENCY ARBITRATION-AT-A-GLANCE
- these guidelines apply only to federal agencies' use of arbitration in
administrative and contractual matters, not to the use of
arbitration by litigators to settle a case in federal court
- the Administrative Dispute Resolution Act of 1996 imposes several statutory
requirements before federal agencies may use any type of arbitration
- for any type of arbitration, all parties must consent to arbitration either
before or after the dispute has arisen
- the arbitration agreement covering the specific subject matter must:
- have a cap on the amount of monetary relief the arbitrator(s) can award
- must be in writing
- may limit the range of potential other outcomes or remedies
- recommended: that the range of potential non-monetary relief
an arbitrator is empowered to order is specified in the agreement
- the federal official who consents to arbitration must have authority to
use arbitration or otherwise have settlement authority for the subject matter
of the dispute
- prior to the use of binding arbitration, the agency head
must have issued guidelines on the appropriate use of binding arbitration
in consultation with the Attorney General
- as of November 2003, only three agencies have issued such guidance: Federal
Aviation Administration, the Federal Deposit Insurance Corporation, and the
Federal Motor Carrier Safety Administration
- federal ADR officials who have questions or need advice should contact
the Office of Dispute Resolution at the U.S. Department of Justice, telephone
202-616-9471