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Arbitration program policies have undergone many changes over the last few decades. For example, 1996 was an important year for interstate movers. That’s when an important requirement got put in place. Movers had to adjust to the change so that they could maintain registration. So, what did the movers now have to do? They had to provide neutral binding arbitration. That arbitration extends toward all interstate shipments connected to individual shippers. This is to help people resolve their disputed claims.
2006 was another important year for arbitration policies. That’s when the Household Goods Movers Oversight and Reform Act went into effect. The act features expanded requirements that concern the following two factors. 1. Disputes that have to do with extra charges. These charges get billed to each shipper once a shipment’s delivered. 2. Disputes that concern claims involving loss and damage.
Arbitration regulations reflect upon two major forms of disputes. Both of which fall under arbitration statutory requirements. The types of disputes affect all sorts of interstate household goods movers.
-Arbitration Program Dispute #1
The first type of arbitration dispute refers to claims for loss and damage. The loss and damages relate to articles that get transported in shipments. This is when the settlement of a claim must get decided. What does this arbitration focus on? Whether there was real loss or damage through means of the shipment. This form of dispute is often a mandatory arbitration requirement. In fact, it always is unless the dispute-amount totals more than $10,000.
-Arbitration Program Dispute #2
The second form of arbitration dispute deals with extra charges. These are often extra charges applied to shippers through the movers. The charges get applied once shipments have already gotten delivered. This form of dispute is another mandatory arbitration rule. But keep the following notion in mind. The amount of the dispute should total less than $10,000.
There are carriers that have refused to pay awards through their arbitration programs. As a result of this, Rule 22 has gotten added as an official policy. The rule offers specific insights detailing when award payments get sent out.
-New Arbitration Program Rule 22
This arbitration program rule gets referred to as the Order of the Arbitrator. It’s also sometimes referred to as the Satisfaction of Award. It stipulates that the standard period of payment for an Award is 45 days. Those days begin once the Order/Award gets issued. Keep in mind that this rule is subject to the framework of Rules 24 and Rule 25. Feel free to scroll below to read about Rule 24 and Rule 25. (Keep in mind that Rule 25 is now known as Rule 23.)
-New Arbitration Program Rule 24
This new arbitration program rule focuses on corrections involving Orders and Awards. What is the rule's main purpose? It is to get rid of the extra $200 administrative fee. As you may know, that fee was always required for correcting clerical errors. FORUM has the power to correct any administrative or clerical errors/mistakes. The errors/mistakes refer to omission/oversight when Awards or Orders get issued. So, who can request a correction through Arbitration Program Rule 24? A party or the FORUM/arbitrator can make a request. Once again, there is now no fee for making this type of request.
-Revised Arbitration Program Rule 25
Rule 25 of the Arbitration Program is now revised. The rule refers to reconsidering Orders and Awards. Parties can, of course, request modifications for Orders and Awards. Each party must make that request within 20 calendar days after an Order/Awards. All requesting parties first have to file their requests with the FORUM. Next, they must pay a fee of two hundred dollars to the FORUM. No party can make a second request after the first one.
The FORUM then notifies the responding party about the request. This gets done on an immediate basis. The responding party receives one official copy of the request. That’s when the twenty-day rule comes into play. The responding party then has 20 calendar days to file an official response. Then, the arbitrator can reconsider the award if the following factors become met:
1. The arbitration program Order or Award has not gotten finalized.
2. The arbitration program Order or Award features obvious mistakes in the material. Also, the Order/Award cannot seem too ambiguous to the arbitrator.
3. An arbitrator has not made an official decision. That potential decision references the submitted arbitration program issue.
4. An arbitrator determines the issue has not gotten agreed-upon for submission. This applies to both parties within the arbitration program.
A decade ago, the National Arbitration Forum (FORUM) made an important request. They asked the AMSA Board to increase the fees that the FORUM assesses. This applies toward the administration of many cases. The new fees (listed below) went into effect on October 1, 2010. They replace the previous fees that were active as of January 1, 2006. But keep in mind that there are three fees that have not gotten increased:
1. The fee for oral hearings.
2. The modification/late fee.
3. The extension fee.
Also, remember that the new fees listed below are part of a prorated basis. The program got designed so that customers could take care of claims away from court. Thus, the Board did not want customer fees to discourage people from taking part in the program. Also, carriers have to pay a lot more in small claims and district courts. That’s why the FORUM admin-fees get considered as a good deal by many industry experts. Here are the updated fees:
-If the amount of the disputed claim is below $10,000, the admin-fee is $650. The customer’s share of the admin-fee is $300. The carrier’s share of the admin-fee is $350.
-If the amount of the disputed claim is $10,000 - $20,000, the admin-fee is $700. The customer’s share of the admin-fee is $320. The carrier’s share of the admin-fee is $375.
-If the amount of the disputed claim is $20,000 - $30,000, the admin-fee is $750. The customer’s share of the admin-fee is $350. The carrier’s share of the admin-fee is $400.
-If the amount of the disputed claim is $30,000 - $40,000, the admin-fee is $800. The customer’s share of the admin-fee is $375. The carrier’s share of the admin-fee is $425.
-If the amount of the disputed claim is $40,000 - $50,000, the admin-fee is $850. The customer’s share of the admin-fee is $400. The carrier’s share of the admin-fee is $450.
-If the amount of the disputed claim is over $50,000, the admin-fee is $850 + 1% of the total. The customer’s share of the admin-fee is $400 + 1% of the total. The carrier’s share of the admin-fee is $450 + half of the 1% of the total.
Contact Us Today for More Required Arbitration Program Information
Do you need more required arbitration program information? If so, the Moving Authority team is standing by and ready to help you out. Our experts can provide complete details about anything involving arbitration programs. Here is an example. Say you are uncertain of what information to provide to your customers before moves. The Moving Authority team can provide you with that information ASAP. Below are three important pieces of arbitration program information. We often assist our clients with the following issues:
-Member Carrier Arbitration Program Information
Are you a member carrier? If so, you deserve to stay up-to-date with all relevant arbitration program information. That’s why our team is ready to offer a thorough explanation about the program. We can explain all arbitration requirements that affect interstate movers. Keep in mind that our team relies on federal guidelines for all information. And those guidelines state that arbitration is optional for all customers. But it is sometimes mandatory for carriers. For example, you have to agree to settle claims through arbitration if the amount is less than $10,000. A voluntary basis for arbitration applies to some claim settlements. These are settlements that total more than $10,000. This is often more cost-effective than having to go through a court system.
-Arbitration Program Shipper Information
Shippers must know about arbitration program rule changes and revised fees. That’s where Moving Authority comes into play. One of our missions is to help both shippers and carriers succeed. We can help you gather legal information that’s required for you to disclose to customers. This includes all relevant information about opting for arbitration, like the specific costs. The government stipulates that this information has to get received by C.O.D. customers. They have to receive the info before moves happen. That’s why you should consider including this information in your sales presentation. Moving Authority will help you do so by creating high-quality pre-move material.
-The Official Arbitration Program Rules
Our team can provide a complete list of all arbitration program revised rules. Our lists even include a timetable of when certain procedures have to get put in place. This is to ensure that your arbitration process does not encounter any road bumps. Moving Authority can also provide you with sample forms. These forms benefit shippers when they submit arbitration claims. This happens once both parties have agreed to take part in arbitration. No matter what arbitration program information you need, we are ready to help. If you have any questions about certain arbitration requirements, call us today.
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