Know The Rules Before Playing Ball: The ICDR And AAA's Supplementary Rules Governing Baseball-Style Arbitrations

Baseball-style arbitration is a promising tool that encourages parties to reach an amicable resolution of their disputes. Although increasing in popularity, agreements to participate in a baseball-style arbitration often fail to spell out the ground-rules. Nevertheless, by agreeing that an arbitration, under the AAA or ICDR rules, "shall take place as a 'final offer,' 'baseball,' or 'last best offer' arbitration," a party may unwittingly be subject to the Baseball Arbitration Supplementary Rules. Thus, familiarity with the Baseball Arbitration Supplementary Rules at the outset of a dispute is necessary to develop a successful settlement and arbitration strategy.

The Emergence of Baseball-Style Arbitration