Arbitration

[PeterK]

I'm involved as a witness in an arbitration where the buyer asserts that the inspector did not inspect according to the Standards of Practice that he was given. I have limited experience in arbitrations so I would like to ask of anyones experience in arbitration hearings as far as awards, etc. Depending on the pre inspection agreement, can the arbitrator award damages or is the inspector held to just the fee paid? Any info on your experiences will be helpful whether its awards or how the hearing went.

Thanks,

PeterK

[chicago]

Hi Peter from what I gather the award may have a lot to do with state laws.

It also seems according to the message board at my association that if the inspector has E& O insurance they will often settle.

It looks like following SOP is a big factor in protecting yourself,along with a well written inspection aggrement.

[Jim Katen]

Originally posted by PeterK

I'm involved as a witness in an arbitration where the buyer asserts that the inspector did not inspect according to the Standards of Practice that he was given. I have limited experience in arbitrations so I would like to ask of anyones experience in arbitration hearings as far as awards, etc. Depending on the pre inspection agreement, can the arbitrator award damages or is the inspector held to just the fee paid? Any info on your experiences will be helpful whether its awards or how the hearing went.

Thanks,

PeterK

The arbitrator can do any damn thing he wants. In my experience, they almost always try to cut the baby in half in an effort to be "fair to all parties."

Their goal seems to be making everyone unhappy with the outcome.

- Jim Katen, Oregon

[Chad Fabry]

: The arbitrator can do any damn thing he wants. In my experience, they almost always try to cut the baby in half in an effort to be "fair to all parties."

Their goal seems to be making everyone unhappy with the outcome.

Every time I've used an arbitrator (don't ask) I've always left knowing I'd have been far better served by paying an attorney and taking my chances in court.

Like Jim said, it's all about everyone feeling good (or bad) and no matter how right you are or what's fair, significant compromises will be made.

[kurt]

Hansen said something like "arbitration is jury by ambush" or something like that.

Anyone got the exact quote? It described the process perfectly.

[Jim Katen]

Originally posted by kurt

Hansen said something like "arbitration is jury by ambush" or something like that.

Anyone got the exact quote? It described the process perfectly.

I believe it was "trial by ambush."

- Jim Katen, Oregon

[Chris Bernhardt]

I have a mediation and arbitration clause in my contract however I have been thinking about taking the arbitration part out.

The only reason I have it in there is to have the option to slow things down, so I imagine, if I get an overly agressive client trying to drag me into court before I'm willing. I had had the clause reviewed by an atty years ago and he thought it was good thing at the time.

Now I wonder.

Chris, Oregon

[kurt]

It's further complicated by certain insurance companies that insist it be part of the pre-inspection agreement.

I'd take mine (arbitration clause) out if my insurance company didn't want it.