Rules (2002 Edition)
To apply only to applications received on or after 1st January 2002

The Chartered Institute of Arbitrators ("the Institute") has developed this innovative dispute resolution scheme in association with the Musicians Union ("MU").

Under the Rules of the Scheme, Parties in dispute are able to refer their dispute to mediation and to progress automatically to arbitration if mediation fails to resolve the dispute ("mediation/arbitration"). Alternatively, the Parties may choose mediation only, in which case arbitration or litigation remains open to them if mediation fails to resolve the dispute, or they may proceed directly to arbitration.

The Parties should take care to read the Guidance Notes that accompany these Rules prior to submitting an application for mediation, arbitration, or mediation/arbitration.

All references in these Rules to the Arbitration Act are to the Arbitration Act 1996 as the same may be amended or re-enacted from time to time.

1. INTRODUCTION

1.1 The Scheme applies to disputes where:
(a) At least one Party is a member of the MU. In these circumstances the cost of dispute resolution for the MU member(s) may be funded in whole or in part by the MU. For further information on whether a Party's costs are covered the Party in question should seek clarification from the MU at the earliest opportunity; or
(b) Parties have a music or music industry related dispute but neither Party is a member of the MU. In such circumstances the MU will not fund any of the costs of dispute resolution.
1.2 The Scheme does not apply to disputes where:
(a) One or either of the Parties has already initiated legal action, unless that legal action is discontinued by agreement;
(b) Claims concern physical injury, illness, nervous shock or their consequences;
(c) Claims for compensation are in excess of £100,000.
1.3 Proceedings under these Rules may be initiated by either Party (whether a member of the MU or not), and whoever initiates the proceedings is the "Claimant", and whoever is defending the proceedings is the "Respondent" throughout these Rules.
1.4 On receipt of the completed Mediation/Arbitration Application Form signed by all Parties to the dispute, the Institute will appoint the relevant neutral to resolve the dispute.
1.5 If the neutral believes that the dispute is not capable of resolution under the Rules, the Parties shall be so advised in writing. In that event the neutral's appointment will be cancelled, the Parties application for mediation or arbitration will be considered null and void and the relevant registration fees refunded.
1.6 These Rules apply to disputes between two parties but, if they and the neutral agree, the Rules may be adapted for a dispute involving three or more Parties. Where there are more than two Parties to the dispute the neutral's fees may be renegotiated prior to any Party, the Institute or the neutral incurring any cost.
1.7 A Registration Fee of £150 plus VAT is payable by each Party when an application for mediation/arbitration is submitted. There will be no additional Registration Fee required from the Parties if the matter proceeds from mediation to arbitration. If the Parties wish to apply for mediation without arbitration or proceed directly to arbitration a Registration Fee of £100 plus VAT is payable by each Party. Registration Fees are non-refundable in all circumstances save for those laid out in Rules 1.5 and 4.8(b) and 5.1(h).
1.8 The Institute administers the Scheme independently and the appointment of a neutral is at its unfettered discretion.
1.9 The use of electronic mail and related technologies is acceptable in facilitating the resolution of disputes under these Rules. In cases where the Parties wish to use online methods they should refer to the Institute's IT Protocol which can be downloaded from the Institute's website at www.arbitrators.org.

2. MEDIATION PROCEDURE

2.1 To commence mediation/arbitration, a joint application must be first submitted to the Institute on the Scheme Application Form, accompanied by:
(a) A short case resume from each Party giving details of the dispute in order to help the mediator understand the issues
(b) The appropriate Registration Fees
2.2 The mediation commences when the Institute writes to the Parties giving them the Mediator's details. The President or a Vice-President of the Institute will appoint the Mediator, who will be a member of the Institute's Panel of Mediator's. The Institute will send the case file and Application Form to the Mediator at this stage.
2.3 Once appointed, the Mediator will notify the Parties of the arrangements for a meeting between the Mediator and the Parties.
2.4 The mediation will be in the form of an attended meeting, attended by the decision maker for each of the Parties in dispute and no more than one additional representative for each Party. Costs of representation are the responsibility of the Parties and cannot be claimed back as expenses of the mediation.
2.5 The mechanics of the mediation process will be agreed between the Parties and the Mediator in advance of the mediation day. The mediation day is limited to one working day of 7 hours maximum. The Mediator's Fees are set at £100 plus VAT for reading case papers and arranging the mediation prior to the mediation day, and £60 plus VAT per hour (maximum 7 hours), plus reasonable travelling expenses at cost for the mediation day itself. If, at the end of the mediation day the Parties wish to continue to mediate then they may do so but the special cost provisions of the Scheme will no longer apply and the Mediator will be at liberty to negotiate a more commercial rate with the Parties.
2.6 Where the Parties have applied for joint mediation/arbitration then if the dispute is not resolved by mediation it will proceed to arbitration and the Parties will follow the arbitration procedure outlined in Rule 3 below.
2.7 If the dispute is resolved during mediation, the Mediator will formulate a written agreement between the Parties. This signed agreement will be a binding contract and as such is capable of being enforced by the Court.
2.8 The Institute may appoint a substitute Mediator in the event of the original Mediator resigning, dying or otherwise becoming incapacitated, or for any reason being unable to attend competently and/or expeditiously, and/or without conflict of interest to his duties.

3. ARBITRATION PROCEEDURE

3.1 To commence arbitration proceedings, a joint application for arbitration must first be submitted to the Institute on the Scheme Application Form, accompanied by the appropriate Registration Fees, save that where the Parties have applied for mediation/arbitration, the dispute shall automatically be referred to arbitration if not resolved through the Scheme's mediation procedure.
3.2 If arbitration is being used as a follow-on to mediation, the Mediator's notes can only be referred to by the appointed Arbitrator by agreement between the Parties, and with the agreement of the Mediator.
3.3 The arbitration commences when the Institute writes to the Parties telling them that their application for arbitration has been accepted.
3.4 The President or a Vice-President of the Institute will appoint an Arbitrator and the Institute will inform the Parties of his appointment. If mediation has already been attempted, the Mediator will only be appointed Arbitrator on the written request of each Party, and only if the Mediator is suitably qualified to act as Arbitrator in the opinion of the President or a Vice-President of the Institute.
3.5 The Institute may appoint a substitute Arbitrator in the event of the original Arbitrator resigning, dying or otherwise becoming incapacitated, or for any reason being unable to attend competently and/or expeditiously, and/or without conflict of interest to his duties.
3.6 Once appointed the Arbitrator will communicate with or issue directions direct to the Parties. All correspondence to and with the Arbitrator must be copied to all other Parties by the Party initiating the correspondence.

4. ARBITRATION PROCEEDINGS

4.1 The arbitration will normally proceed on the basis of written submissions only. However, if either Party requests it and if the Arbitrator considers it appropriate, a meeting and/or inspection may be held. Any such meeting and/or inspection shall be held in the presence of both Parties who may be questioned by the Arbitrator in order to clarify matters in dispute. The Parties shall meet the costs of such a meeting and/or inspection. The Arbitrator's fees for the meeting and/or inspection will be set at the hourly rate for the arbitration, and any meeting and/or inspection is limited in length to 7 hours.
4.2 Within 28 days of receipt of the Statement of Claim Form the Claimant shall send the completed Form to the Institute together with all supporting documents to prove their case. The Claimant may not subsequently raise issues or claim amounts not raised or claimed on the Scheme Application Form without the Arbitrator's consent.
4.3 The Institute will send a copy of the Statement of Claim and supporting documents to the Respondent who then has 28 days from receipt in which to submit a written Statement of Defence with supporting documents in duplicate. The Respondent may also submit, in duplicate and with supporting documentation, a written counterclaim at this stage.
4.4 A copy of the Statement of Defence, including any counterclaim and supporting documents, will be sent by the Institute to the Claimant, who is entitled to submit written comments by way of a Response within a further 14 days from receipt. Such Response must be restricted to points arising from the Respondent's Defence (and counterclaim if any). The Claimant may not introduce any new matters, new issues or new Points of Claim for determination by the Arbitrator in their Response, and if they do so the Arbitrator will disregard them.

The content for submissions for arbitration will be as follows: -

4.5 The Statement of Claim shall include:
  (a) The nature and basis of the Claim;
  (b) The amount of compensation claimed or other remedy sought;
  (c) All supporting documents (originals where possible) relied on as evidence
     
4.6 The Statement of Defence shall include: -
(a) What matters in the opposing documents are accepted or agreed;
(b) What matters are disputed, with reasons;
(c) The nature and basis of any counterclaims (including the amount of compensation claimed or other remedy sought)
(d) Where the Claimant is unable to submit an original (or copy) of any document in the Respondent's possession or control with the Statement of Claim, the Respondent shall use reasonable endeavours to provide an original (or copy) of that document.
   
4.7 The Response by the Claimant to any Defence (and counterclaim if any) shall include: -
(a) What matters in the opposing documents are accepted or agreed;
(b) What matters are disputed, with reasons;
(c) Any other relevant supporting documents relied on as evidence.
   
4.8 If any Party fails to deliver anything required by these Rules and does not supply it within 14 days of a reminder by the Institute or the Arbitrator then:
  (a) Where a Statement of Claim is not delivered within the said 14 days the Claimant's claim shall be deemed to be abandoned;
  (b) Where a claim is abandoned the arbitration will not proceed. The Respondent's registration fee may be refunded;
  (c) Where the failure concerns information requested by the Arbitrator, the arbitration shall proceed as the Arbitrator considers appropriate;
  (d) Where the failure is non-delivery of the Defence within the said 14 days of a reminder the Arbitrator may make an Award on the basis of the documents received.

5. POWERS OF THE ARBITRATOR

5.1 The Arbitrator shall have the jurisdiction and power to direct the procedure of the arbitration in terms of Section 34 of the Arbitration Act. The Arbitrator shall also have the power to:
(a) Allow submission of further evidence and the amendment of the Claim or Defence;
(b) Order the Parties to produce goods, documents or property for inspection;
(c) Conduct such enquiries as may appear to the Arbitrator to be desirable;
(d) Receive and take into account any oral or written evidence as the Arbitrator shall decide to be relevant;
(e) Appoint an expert to report on specific issues or provide legal advice. Experts fees shall not exceed £500 per expert without the consent of both Parties;
(f) Award interest whether or not claimed;
(g) Proceed with the arbitration if any Party fails to comply with these Rules or with the Arbitrator's directions, or if any Party fails to attend any meeting and/or inspection ordered by the Arbitrator but only after giving that Party written notice;
(h) Terminate the arbitration if the Arbitrator considers the case to be incapable of resolution under the Scheme;
5.2 If the Parties settle their dispute prior to an Award they must immediately inform the Institute in writing of the terms of the settlement and the Arbitrator shall record them in a Consent Award enforceable under the Arbitration Act.
5.3 In addition to the powers conferred by these Rules, the Arbitrator shall have the widest discretion permitted by law to resolve the dispute in a fair, just, speedy, economical and final manner in accordance with natural justice.

6. THE ARBITRATOR'S AWARD

6.1 The Arbitrator will make an Award with reasons in writing after considering all submissions and evidence. The Award may be for an amount up to and including a maximum of £100,000, inclusive of interest and costs.
6.2 The Institute will send a copy of the Award to each Party (and, where at least one Party is a member of the MU, to the Musician's Union for their own private use).
6.3 Unless otherwise directed, any amount awarded shall be paid within 21 days of dispatch of the Award to the Parties. Such payments shall be made direct to the Party entitled to receive it.
6.4 Any Award made under this Scheme is final and legally binding on all Parties, subject to the Scheme's Review Procedure, which is dealt with under Rules 9, 10, and 11. If either Party wishes to appeal against the Award outside of the Review Procedure, if indeed such an appeal is legally possible, they must seek leave to appeal in the High Court, and are strongly advised to seek legal advice particularly as regard time limits within which such leave must be sought.
6.5 The Arbitrator is not liable for anything done or omitted in the discharge or purported discharge of his functions as Arbitrator unless the act or omission is shown to have been in bad faith.
6.6 Original documents will be returned to the Parties within 42 days of the date of dispatch of the Award, unless an application for Review has been received by the Institute pursuant to Rule 9.

7. COSTS OF MEDIATION AND ARBITRATION

7.1 The Mediator's Fees and travel expenses (see Rule 2.5) shall be paid to the Institute by the Parties as agreed between them as part of the settlement. If there is no agreement between the Parties regarding Fees then the Institute will invoice the Parties for an equal share of such Fees and expenses.
7.2 The Institute does not charge an administration fee for mediation, however, the Institute does charge an Administration Fee for arbitration of £200 plus VAT, which shall be paid by the Parties (or one of them) as directed in the Arbitrator's Final Award.
7.3 The Arbitrator's Fees will be £80 plus VAT per hour with an eight-hour cap. The fees and expenses of any expert or legal adviser appointed by the Arbitrator shall be paid by the Parties as directed in the Arbitrator's Final Award.
7.4 In exceptional circumstances (determined exceptional by the Institute or, where at least one of the Parties is an MU member, by the Institute and the MU) the Arbitrator may request an increase in fees for the arbitration, based solely upon the amount of hours it will take to resolve the dispute and not based upon the hourly rate.
7.5 Subject to Rule 7.6 below, each Party shall bear its own costs of preparing and submitting its case and of attending any hearing. No legal action may be brought to recover these costs.
7.6 The Arbitrator may also order one Party to pay any or all of the other Party's costs, fees and expenses (including without limitation any costs of travel representation or otherwise and those fees and expenses set out in Rules 7.1, 7.2 and 7.3) where in the Arbitrator's opinion the former has acted unreasonably and caused the opposing Party unnecessary expense.

8. FINALITY OF THE AWARD

8.1 Subject only to Rule 8.2, the Award of the Arbitrator will be final and binding on all Parties, and any payments that the Arbitrator directs to be paid must be paid within 21 days of the date of the Award.
8.2 If, however, either Party considers the Award is one that no reasonable Arbitrator should have reached on the basis of the evidence presented, any payment ordered should still be made, but they may write to the Institute within 21 days of the date of the Award requesting that the matter be referred to Review.
8.3 If no Application for Review is received within 21 days all Parties must comply with the terms of the original arbitration Award.

9. REVIEW PROCEDURE & RULES

9.1 Any Party to arbitration under this Scheme may seek review of the Award of the original Arbitrator. The Party requesting the Review is known as the "Appellant".
9.2 An application for Review by the Appellant will only be considered if:
(a) The Institute receives an Application for Review, together with additional copies for each of the other Party or Parties ("the Review Respondent(s)"), within 21 days of the date that the Award was received by the Party.
(b) It is accompanied by a copy of the Arbitrator's Award together with a statement setting-out the reasons why the Award is one that no reasonable arbitrator should have reached on the basis of the evidence presented.
(d) A cheque accompanies it for the sum of £500 plus VAT, made payable to "The Chartered Institute of Arbitrators". This fee is known as the "Review Fee".
9.3 The Institute will acknowledge receipt of the Application for Review and notify the Review Respondent(s) that the Application for Review has been made.
9.4 With the acknowledgement outlined in Rule 9.3, the Institute will send a copy of the Appellant's Application for Review to the Review Respondent(s) who may, within 14 days of receipt, send to the Institute a written "Review Response". The Institute will send a copy of any Review Response to the Appellant and to every Review Respondent involved. No further representations shall be allowed except by leave of the Review Arbitrator.
9.5 The Institute shall appoint a sole senior arbitrator ("the Review Arbitrator") to determine the dispute and shall notify the Parties of such appointment.
9.6 The Institute shall obtain from the original Arbitrator the documents submitted by the Parties to him/her and deliver those documents together with a copy of the original Award and the Application for Review and Review Response(s) to the Review Arbitrator. The Review Arbitrator shall not consider any new evidence presented by any Party in the Review, and may either:
  (a) Confirm the original Award, or
  (b) Set aside the original Award in whole or in part and substitute a new Award

10. COSTS OF THE REVIEW PROCEDURE

10.1 The Appellant shall pay the Review Fee and shall not be entitled to recover this fee and no order shall be made in relation to this fee, regardless of the outcome of the Review.
10.2 After the Review has been considered the Review Arbitrator shall also consider any costs order made by the Arbitrator at first instance. In doing so, the Review Arbitrator may, within the absolute discretion exercised in accordance with Rules 5.1 and 5.2, order the reimbursement by one Party to the Review of any Registration Fee paid by any other Party.
10.3 Each Party shall bear its own costs of preparing and submitting its case for Review (including legal costs).

11. MISCELLANEOUS CONDITIONS OF THE REVIEW PROCEDURE

11.1 The Rules relating to the conduct of arbitration at first instance shall apply to a Review except where such Rules are inconsistent with Rules 9 and 10.
11.2 Upon completion of the Review Procedure, no further steps can be taken by any Party under these Rules. Any Party considering the possibility of an appeal to the courts, if indeed such an appeal is legally possible, is strongly advised to seek legal advice.

12. CONFIDENTIALITY

12.1 No Party involved in any dispute under the Rules, or the Institute, the Mediator, the Arbitrator or the Review Arbitrator, shall disclose explicit details of the proceedings, Award or reasons for the Award to any stranger to the proceedings unless it is necessary to do so in order to enforce the Award or as may be required by law. Notwithstanding the foregoing, the Institute and the MU may collate and process data pertaining to the use of the Scheme, compile, analyse and publish statistics therefrom and monitor and review the operation of the Scheme provided always that (save with the express consent of the Parties) no personal data privileged or confidential information shall be published.

13. MISCELLANEOUS

13.1 The law to apply shall be determined by the Arbitrator if the Parties fail to agree.
13.2 Awards made under the Scheme shall be final and binding on the Parties, subject to the conditions of the Review Procedure.
13.3 Subject to the right of either Party to request the Institute to draw the Arbitrator's attention to any accidental slip or omission which he/she has power to correct by law, neither the Institute nor the Arbitrator can enter into correspondence regarding an Award made under the Scheme.
13.4 Neither the Institute nor the Mediator nor the Arbitrator nor the Review Arbitrator nor the MU shall be liable to any Party for any act or omission in connection with any mediation and/or arbitration conducted under these Rules, save that the Mediator and/or Arbitrator and/or Review Arbitrator (but not the Institute or the MU) shall be liable for any wrongdoing on his/her own part arising from bad faith.
13.5 Nothing herein shall prevent the Parties or either of them from appealing the Award to the High Court in terms of the Arbitration Act. This provision applies equally to the law of Scotland.