Small Business Arbitration Rules and Procedures

Rule 1 – Purpose and Jurisdiction

The purpose of these rules is to provide an expeditious, fair, and cost-effective method for arbitrating small business claims. The Small Business Arbitration Co. (SBA) will not accept consumer cases and is limited to business-to-business claims valued at less than $250,000.

Rule 2 - Initiation of Proceeding

To commence a proceeding, any party to a dispute must file a Demand for Arbitration along with a $999 filing fee, transmitted electronically. SBA can only arbitrate disputes where it is named as the arbitration forum or where the respondent consents to SBA's jurisdiction by participating in the process.

Rule 3 - Initiation of Service, Answer, and Counterclaim

Upon receipt of a Demand for Arbitration and the filing fee, SBA will promptly serve the opposing party (or parties) with a copy of the demand. This transmittal will advise the respondent of the option to file an answering statement or counterclaim. Notice by certified first-class mail or email constitutes effective service.

Rule 4 - Conference Call/Hearing Date

Following the service of the Demand for Arbitration, a conference call will be convened to discuss the hearing date, selection of the arbitrator, and other pertinent matters. Upon payment of the arbitration fee, Zoom notice of the hearing date will be served on the parties.

Rule 5 - Discovery and Conduct of Hearing

Requests for discovery will be decided by the arbitrator. Discovery will be allowed on a limited basis to keep costs to a minimum. All hearings will be conducted via remote technology.

Rule 6 - Arbitrator Immunity

Parties agree that the arbitrator shall not be subpoenaed as a witness in any pending or subsequent litigation related to the arbitration. The arbitrator, SBA, and its employees or agents shall not be liable to any party or attorney for any act, error, or omission regarding their participation in any manner.

Rule 7 - Ex parte Communications

Under no circumstances may a party conduct ex parte communications with the arbitrator regarding any issue related to the arbitration. All necessary ex parte communications with SBA must be conducted with the case manager or director of SBA.

Rule 8 - Subpoenas

All subpoenas must be approved and issued by the arbitrator. Issuance of a subpoena in an arbitration proceeding shall be governed by 42 Pa. C.S.A.§ 7309.

Rule 9 - Confidentiality

Unless otherwise agreed upon by all parties in writing, all arbitration proceedings shall be conducted in a confidential manner.

Rule 10 - Applicable Law and Awards

All matters submitted to SBA shall be decided under the laws of the Commonwealth of Pennsylvania. The arbitrator shall issue an award in writing within five business days of the conclusion of the hearing or last submission by any party. All awards shall be in writing and signed by the arbitrator. The award may or may not include the arbitrator's rationale, findings of fact, or conclusions of law, at the sole discretion of the arbitrator. The arbitrator may award costs but not attorney's fees. Service of the award on the parties shall be in the same manner as prescribed for service in Rule 3. All awards are reviewable and enforceable under applicable law. By participating in the SBA process, a party is deemed to confer jurisdiction upon SBA.

SBA Standard Arbitration Clause

Any dispute, claim, or controversy arising out of or relating to this agreement or the breach, termination, enforcement, interpretation, or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be determined by arbitration, administered by the Small Business Arbitration Co. pursuant to its arbitration rules and procedures. Judgment on the award may be entered in any court having jurisdiction. This clause shall not preclude parties from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction.