Attention Arbitrators: Don’t Fall into the 100/0 Liability Mindset!

While Recovering Parties often seek 100% recovery in arbitration, Adverse Parties often reply with a 0% liability admission. These declared liability positions should not influence you to limit your options to award all or nothing. 

Please consider the following when making a liability decision:
  1. Did the Adverse Party argue the Recovering Party breached a duty or duties owed? 
  2. If yes, did the evidence support the alleged breach or breaches of duty?
  3. If yes, the decision should include a commensurate percentage of negligence versus the Recovering Party. 
We have provided an example of a potential arbitration outcome applying comparative negligence. 
Screenshot of 80/20 liability assignment
 Screenshot of Duties breached tab with comments
 
When a Recovering Party files a case with at least two Adverse Parties and one of companies is in liquidation, the case will proceed to hearing. The Recovering Party can contact the Member Service Center to remove the company in liquidation before the case is ready to hear. If the party is not removed, arbitrators can rule liability against a party in liquidation, but the award will not be collectible. 

If there is only one Adverse Party and that company is in liquidation, the case will receive an administrative extension.
 

The information provided is for general informational purposes only and should not be submitted in cases as evidence.