ARBITRATION OF SMALL BUSINESS DISPUTES - THE POTENTIAL FOR NEBRASKA

• NCJ Number: 66370
• Journal: Arbitration Journal Volume: 35 Issue: 1 Dated: (MARCH 1980) Pages: 17-24
• Author(s): F S FORBES
• Date Published: 1980
• Length: 8 pages
• Sponsoring Agency: Small Business Admin
• Corporate Author: American Arbitration Assoc
• Publication Format: Article
• Language: English
• Country: United States of America

Annotation

THROUGH A REVIEW OF NEBRASKA LAW AND SURVEYS OF ATTORNEYS AND SMALL BUSINESS, AND THE AUTHOR SUGGESTS MODIFYING THE NEBRASKA ARBITRATION LAW TO MAKE THE PROCEDURE A MORE ATTRACTIVE ALTERNATIVE TO COURT LITIGATION.

Abstract

THE DIFFERENCE BETWEEN SUBMITTING A DISPUTE TO ARBITRATION UNDER THE NEBRASKA STATUTE AND UNDER COMMON LAW IS DESCRIBED. PARTICULAR FEATURES OF THE LAW, INCLUDING THE INITIATION OF ARBITRATION PROCEEDINGS, SUBMISSION TO ARBITRATION OF MATTERS ALREADY IN LITIGATION, RULES OR STATUTES APPLICABLE TO REFEREES, REVOCATION OF SUBMISSION, AND DEFAULT AWARDS ARE EXPLAINED. RESULTS OF A 1978 SURVEY ARE DISCUSSED IN WHICH A SAMPLE OF 799 SMALL BUSINESSES WAS DRAWN FROM THE DIRECTORY OF NEBRASKA SMALL BUSINESSES. AN 18-PERCENT RESPONSE RATE WAS RECEIVED TO A LETTER ASKING ABOUT THE PAST USE OF ARBITRATION AS A METHOD OF DISPUTE RESOLUTION AND ABOUT ATTITUDES TOWARD ITS FUTURE USE. RURAL AREAS ACCOUNTED FOR 36 PERCENT OF RESPONSES AND URBAN AREAS 64 PERCENT. A TOTAL OF 21 PERCENT HAD BEEN INVOLVED IN SOME FORM OF ARBITRATION, LARGELY LABOR DISPUTES. RESPONDENTS DID NOT USE ARBITRATION BECAUSE THEY EITHER FELT THERE WAS NO NEED TO USE IT OR WERE UNAWARE OF THE METHOD AS A PRACTICAL ALTERNATIVE. HOWEVER, 68 PERCENT INDICATED A WILLINGNESS TO SERVE ON A CITIZEN'S ARBITRATION PANEL. APPROXIMATELY 95 PERCENT OF THE RESPONDENTS STATED THEY DID NOT BELIEVE THAT ONLY ATTORNEYS SHOULD SERVE AS ARBITRATORS. IN ANOTHER RANDOM SURVEY OF 232 NEBRASKA LAWYERS WITH A RESPONSE RATE OF 29 PERCENT, 62 PERCENT SAID THEY DID NOT AGREE WITH THE LAW (I.E., THEY THOUGHT AGREEMENTS TO ARBITRATE FUTURE DISPUTES SHOULD BE ENFORCEABLE). THE ARTICLE SUGGESTS THAT LEGISLATIVE AND POSSIBLY CONSTITUTIONAL CHANGES MAY BE NECESSARY. LEGISLATIVE AMENDMENT OF THE PRESENT ARBITRATION STATUTE, CONSISTENT WITH THE UNIFORM ARBITRATION ACT, FOR THE ENFORCEABILITY OF SUCH AGREEMENTS, IS SEEN AS THE BEST APPROACH. FOOTNOTES ARE PROVIDED.