Acacso Conference May 2018, San Antonio (TX)
This presentation provides a practical overview of arbitration procedures available under the AAR Car Service and Car Hire Rules. It explains when arbitration may be used to resolve disputes between railroads and walks through the processes established under Car Service Rule 17, Car Hire Rule 17, and Car Hire Rule 25.
The session first examines Rule 17 arbitration for disputes involving differing interpretations of Car Service or Car Hire Rules. Using a step-by-step example, the presentation follows a dispute from the initial request for arbitration through submission of abstracts and rebuttals, review by the Equipment Assets Committee (EAC) and a Technical Advisory Group (TAG), and final consideration by the designated arbitration committee.
The presentation then reviews the Rule 25 process for unresolved car hire rate negotiations, including Best and Final Offers (BFO), requests for binding arbitration, submission of supporting statements and documentation, and the use of American Arbitration Association procedures. It also explains the "baseball-style" arbitration process in which the arbitrator must select one of the rates presented by the parties rather than establish a separate rate.
This presentation is a useful reference for understanding the formal dispute-resolution framework available when normal negotiations cannot resolve a Car Service or Car Hire disagreement, as well as the different procedures that apply to rule-interpretation disputes and car hire rate disputes.
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