Surface Transportation Board Issues Arbitration/Mediation Rules

The Surface Transportation Board (STB) in a decision published May 13, 2013 in Docket EP-699, issued revised rules for Arbitration and Mediation of disputes before it. The Board's decision, which includes the final rules, is attached here. Arbitration, is a form of binding dispute resolution, where parties submit their dispute to a mutually agreed arbitrator (or panel), for resolution. Mediation, by constrast, is a joint process where parties attempt to resolve their dispute, or settle the matter, with the assistance of a mediator. Under the STB's revised arbitration rules, parties must "opt-in" to arbitration, either before a dispute arises or after an action before the Board has been filed. Arbitration awards are limited to $200,000 (unless the parties agree to expand the maximum), and are limited to disputes involving demurrage, accessorial charges, misrouting/mishandling rail cars, and disputes over a carrier's published rail rules/practices (i.e. tariffs). The new mediation rules published by the Board give the Board authority to order mediation in certain disputes - i.e. "those in which the Board is not required to grant or deny a license or other regulatory approval or exemption, and those that do not invovle labor protection." Sec. 1109.1.