Frequently Asked Questions About Commercial Arbitration

Q: How long does commercial arbitration typically take?

Commercial arbitration timelines vary based on case complexity, the number of parties, and the administering institution's procedural rules. American Arbitration Association commercial arbitrations average approximately 11 to 12 months from filing to final award. Jim Reiman manages each proceeding's schedule to balance thoroughness with the parties' interest in efficient resolution.

Q: What happens during an arbitration hearing?

Arbitration procedures are customized to the parties' needs. Typically, the parties exchange information before an evidentiary hearing where the tribunal hears witness testimony, reviews documentary evidence, and receives legal arguments from counsel. Hearings may be conducted in person, by video conference, or through a hybrid format. Jim Reiman works comfortably with all hearing formats and uses secure electronic document management. Following the hearing, parties commonly submit post-hearing briefs before the tribunal issues a decision based on the applicable law and evidence.

Q: What is discovery in commercial arbitration?

Traditional U.S. court discovery does not apply in arbitration. Instead, parties participate in a more limited and customized information exchange process. Relevant documents are exchanged, witnesses are identified, and depositions may be permitted when necessary. Jim Reiman manages discovery to ensure parties can fully and fairly present their cases without incurring unnecessary cost or delay.

Q: What is the difference between institutional and ad hoc arbitration?

Institutional arbitration is administered by organizations such as the American Arbitration Association, ICC, or SIAC, which provide procedural rules, case management, and arbitrator appointment services. Ad hoc arbitration is managed directly by the parties and tribunal without institutional administration, often using the UNCITRAL Arbitration Rules or other agreed procedural frameworks.

Q: What role does the arbitration clause play in a commercial contract?

An arbitration clause requires parties to resolve specified disputes through arbitration rather than litigation. The clause typically identifies the administering institution, governing law, procedural rules, number of arbitrators, seat of arbitration, and scope of arbitrable disputes. Jim Reiman strictly follows the requirements of the parties' arbitration agreement in every proceeding.

Jim Reiman, FCIArb, answers the questions parties and counsel most frequently ask when evaluating arbitration as a dispute resolution method.

Jim arbitrates complex domestic and international commercial disputes from offices in New York City and Chicago, Illinois, serving on 10+ institutional panels including the AAA Large/Complex Case Roster, ICDR, and ICC International Court of Arbitration. He also accepts ad hoc appointments.

The answers below address the arbitration process, scope, credentials, and how Jim's practice serves parties in high-value commercial proceedings. Parties with questions specific to an upcoming matter can contact Reiman ADR directly.

How does the commercial arbitration process work?

Commercial arbitration begins when one party files a demand with an administering institution such as the American Arbitration Association, or commences an ad hoc proceeding.. The responding party acknowledges the demand, and then both sides select an arbitrator or panel of arbitrators through a process set forth in the administering institution’s rules or the parties’ contract. When the panel is selected, the tribunal (whether a single arbitrator or a panel of 3 arbitrators) conducts a preliminary hearing to set the schedule and process for the proceeding..

How long does commercial arbitration typically take?

Commercial arbitration timelines vary by case complexity, number of parties, and the administering institution's procedural rules. AAA commercial arbitrations average approximately 11 to 12 months from filing to final award. Jim Reiman manages each proceeding's schedule to balance thoroughness with the parties' interest in efficient resolution.

What happens during an arbitration hearing?

The beauty of arbitration is that the process is customized to the parties’ needs and desires. Typically, there is a process by which the parties exchange information regarding their case, followed by an evidentiary hearing wherein the tribunal hears oral testimony and receives documentary evidence. Usually, the parties’ counsel also offer argument in support of their clients’ positions. Arbitration hearings occur in-person, using video conference technologies, and using a combination of both, as the parties and tribunal decide. Jim Reiman has experience with all formats, and is comfortable with all applicable technologies (he endeavors to be paperless, receiving all documents, pleadings, and non-oral evidence in electronic format which he keeps in secure cloud storage facilities operated and secured by Microsoft Corporation). Following the evidentiary hearing, usually the parties provide post-hearing briefs, and then the tribunal rules based upon the applicable law and evidence.

What is discovery in commercial arbitration?

US court discovery does not exist in arbitration. Instead, the parties engage in an information exchange process that is narrower than in litigation, and which is customized to the particular needs of the case. Parties exchange relevant documents and identify witnesses under the arbitration tribunal's direction, and when necessary, depositions are permitted. Jim Reiman manages the information exchange process to ensure that all parties are able to fully and fairly present their case, but are not burdened by unnecessary cost.

What is a dispositive motion in arbitration?

A dispositive motion asks the arbitrator to resolve all or part of a dispute before the full hearing, similar to summary judgment in court litigation. Jim Reiman grants dispositive motions when no material facts remain in dispute or when the applicable law clearly dictates the outcome. Generally, dispositive motions are not favored in arbitration. However, Jim Reiman accepts and hears dispositive motions that will limit a case’s breadth or reduce the time and cost of the hearing.

Are commercial arbitration awards legally binding?

Arbitration awards issued under binding arbitration agreements are final and enforceable in court. The prevailing party may petition a court to confirm the award and enter judgment against the losing party. International arbitration awards are enforceable in over 170 countries under the New York Convention.

Can a commercial arbitration award be appealed?

Judicial review of arbitration awards is extremely limited under both US and foreign law. Courts may vacate an award only in narrow circumstances such as arbitrator misconduct, exceeding the scope of authority granted by the parties, or denial of a party's ability to fully and fairly present its case.

What is the difference between arbitration and litigation?

Arbitration resolves disputes through a private proceeding before a neutral arbitrator or panel of 3 arbitrators selected by the parties, while litigation resolves disputes through public court proceedings before a judge or jury assigned by the court. Arbitration typically offers faster timelines, finality through very restricted appellate review, and the ability to customize the process to the parties’ specific needs and desires.

What is the difference between institutional and ad hoc arbitration?

Institutional arbitration is administered by an organization such as the AAA, ICC, or SIAC that provides established rules, case management, and arbitrator appointment procedures. Ad hoc arbitration is managed directly by the parties and tribunal without institutional oversight, often following UNCITRAL Arbitration Rules or other rules for non-administered proceedings as a procedural framework.

What role does the arbitration clause play in a commercial contract?

The arbitration clause is the contractual provision that requires parties to resolve specified disputes through arbitration rather than litigation in court. The clause typically designates the administering institution, governing law and rules, number of arbitrators, seat of arbitration, and scope of arbitrable disputes. Jim Reiman strictly conforms to the parameters of the applicable clause in every proceeding.

What qualifications should parties look for in a commercial arbitrator?

Parties should evaluate subject-matter expertise, institutional panel memberships, industry or business experience, procedural track record, and professional credentials, such as the FCIArb designation from the Chartered Institute of Arbitrators — the only globally recognized certification of professional competence in international arbitration. Jim Reiman's full credentials are available for review.

What is the difference between an arbitrator and a mediator?

An arbitrator hears evidence, applies the law, and issues a binding award that resolves the dispute, subject to limited appellate review. A mediator facilitates negotiation between parties to help them reach a voluntary settlement without authority to impose any resolution. Jim Reiman serves as both an arbitrator and a mediator for select matters.

Does Jim Reiman arbitrate securities and financial services disputes?

Jim Reiman serves as a Public Arbitrator on the FINRA panel and holds AAA appointments covering commercial and mergers and acquisitions matters that frequently involve securities-related claims. Jim's business experience includes serving as Chairman of the Board and as a director of public and private companies, as well as EVP at a NASDAQ-listed company. He is also a Board Leadership Fellow of the National Association of Corporate Direcctors..

What is dispute prevention, and how does Jim Reiman apply it?

Dispute prevention involves structured intervention in ongoing business relationships to identify and resolve differences before they escalate into formal proceedings. Jim Reiman's dispute prevention practice draws on his experience executing cross-border transactions as a CEO and his negotiation teaching the University of Oxford's Saïd Business School.