Does anyone have any experience with the American Arbitration Association or arbitration in general? I have heard that AAA is expensive but the arbitrators are well versed in the construction industry.
I was forced to file a “stop work notice” for non-payment from the homeowner on a large remodel with several additions. My contract requires arbitration.
I have recorded my liens on the property but the property isn’t saleable in its present unfinished condition.
Any advice out there?
Thanks
Replies
I hate the AAA. They used to be good, but not so much any more. Expensive, slow, nonresponsive. If I have a choice, I'll do private arbitration whenever I can. The parties can agree on the AAA rules if they want.
I don't see that the AAA adds anything of value to the mix -- and usually the opposite. Some in their panel arbitrators are good, some downright awful. You're better off just agreeing on someone both parties agrees is good & fair. Any lawyer with a good local construction law firm should be able to fill the role for you with no problem.
That said, your contract may require AAA. If so, that governs unless you and the other side can agree otherwise.
Mike Hennessy
Pittsburgh, PA
I hate the AAA. They used to be good, but not so much any more. Expensive, slow, nonresponsive. If I have a choice, I'll do private arbitration whenever I can. The parties can agree on the AAA rules if they want.
I don't see that the AAA adds anything of value to the mix -- and usually the opposite. Some in their panel arbitrators are good, some downright awful. You're better off just agreeing on someone both parties agrees is good & fair. Any lawyer with a good local construction law firm should be able to fill the role for you with no problem.
I completely agree. The fees and expenses and time wasting procedures drive you crazy and cost a fortune.
"The fees and expenses and time wasting procedures drive you crazy and cost a fortune."
Yeah -- I didn't even mention that. Every AAA arb I've done wound up costing at least as much as, if not more than, a regular court trial -- despite the fact that the idea behind arb is that it's supposed to be cheaper.
Mike HennessyPittsburgh, PA
One experience.
Company I worked for got in a contract payment dispute over whether an excavation contract that used a $ a yard figure for excavation was entitled to charge by "Truck Yards" or "Bank Yards".
Contract did not specify which was to be used and my bosses never asked, assuming that it was "Bank yards " as that is the industry standard here. (PNW)
We lost.
Cost the customer about $60,000
In fairness to the excavator the drawings supplied to the him were not clear as to the size of the hole .