Q&A about Arbitration

Q&A about Arbitration:

  • What are the rules for conducting an arbitration? The North Carolina legislature adopted the Family Law Arbitration Act (FLAA) in 1999. This legislation outlines the rules for arbitration. However, the parties can agree to differ from these rules if they choose to do so.
     
  • Can I force the other party to participate in arbitration? No. Arbitration is completely voluntary. In order for an arbitration to occur, both parties must agree that they want the matter resolved through arbitration. If both parties agree to arbitration, the parties then enter into an Arbitration Agreement, which is enforceable and will require that both parties participate in arbitration to the extent outlined in the agreement.
     
  • At what location is the arbitration held? One of the advantages of arbitration is that the parties can agree on the location of the arbitration proceeding. It is typically held in a law office, and is usually the law office of the arbitrator. The ability to choose the location of the arbitration keeps the proceeding private as opposed to having a trial in a public courtroom.
     
  • Can the arbitrator decide custody and child support? Yes. However, the court always has the authority to decide issues of custody and child support and cannot delegate away its complete authority to an arbitrator. To that end, if a party does not agree with custody or child support decision made by the Arbitrator, that party can request that a district court judge review the Arbitrator’s decision to see if the custody or child support decision was made in the best interest of the minor child or if the child support award was reasonable and adequate to meet the child’s needs. The party seeking to vacate the Arbitrator’s award has the burden of showing the court that the arbitrator’s decision was not in the minor children’s best interest.
     
  • What if one party doesn’t comply with the Arbitrator’s Award? How do I enforce the award? Unconfirmed arbitration awards are contracts and can be enforced as such. A confirmed arbitration award allows a party to avail himself/herself to the contempt authority of the court and may have modifiability ramifications in child custody, child support and spousal support matters.
     
  • Is arbitration binding? Unless the parties contract for judicial review of errors in law, the arbitration is binding.
     
  • Is the arbitrator’s award modifiable? Arbitrator’s decisions regarding child support and custody are always available for review by the district court. Unless the parties have agreed that an award for spousal support shall be nonmodifiable, an arbitrator’s award may be modified just as a judge’s order for spousal support may be modifiable.
     
  • What if the arbitrator clearly made a mistake? Can the arbitrator’s award be corrected or vacated? Yes. A party can petition the district court to vacate or correct an arbitration award but the reasons for vacating an award are very specific and related to procedural improprieties, such as bias. The district court also has the authority to modify or correct an arbitration award if there is an evident miscalculation of figures or mistake in the award, if the Arbitrator awarded upon a matter not submitted to them, or if the award is imperfect in a matter of form, not affecting the merits of the controversy.
     
  • Can I appeal an Arbitrator’s Award? Unless the parties specifically agree otherwise, judicial review of errors of law are not permitted. One of the primary advantages of arbitration is the efficient finality of an award as opposed to a trial with appellate review. If appellate review is preserved in the agreement or consent order to arbitrate, the review will be conducted initially by a district court judge.
     

The attorneys at Ward & Campbell, P.C. are experienced in family law matters and have utilized arbitration as a means to provide cost-effective, timely results for clients in difficult and complicated domestic situations.