The Film Daily (1940)

CM\ DAILY; Friday, November 29, 1940 OFFICIAL TEXT OF RULES OF ARBITRATION I. Initiation of Arbitration An arbitration proceeding: shall be initiated by filine with the Clerk of the Tribunal having jurisdiction of the controversy a Demand for Arbitration and a submission as provided in subdivision 9 of Section XXII of the Decree, and by paying a filing fee of $10.00 to the Clerk of the Tribunal. Filed herewith and made a part of these Rules is a map showing the territory throughout which each Arbitration Tribunal shall have jurisdiction (each of which territories is hereinafter called an Arbitration District), and the city in each such Arbitration District in which the Arbitration Tribunal shall be located. The Tribunal having jurisdiction in a particular proceeding shall be the Tribunal maintained pursuant to Section XXII of the Decree in the Arbitration District in which the complainant's theater is located, except that when a distributor institutes an arbitration proceeding the Tribunal having jurisdiction shall be the Tribunal in the Arbitration District in which the theater involved is located. The Demand for Arbitration shall be signed by the complainant and shall set forth: The name and address of the complaining party: the name and address of each theater involved in the controversy: the name and address of each exhibitor or distributor against whom complaint is made (hereafter sometimes referred to as a defending party) ; the name and address of each other exhibitor and distributor whose business or property it is believed by the complainant may be affected by an award in the proceeding: and a brief statement in simple language of the claim and the relief sought. At the same time of filing the Demand the complainant shall deliver to the Clerk of the Tribunal sufficient copies of the Demand to enable the Clerk to deliver one copy to each defending party and to each other exhibitor and distributor named in the Demand, and the Clerk shall forthwith make such delivery. Within seven days after the date on which the Clerk of the Tribunal delivers a copy of the Demand to a defending party, such party may sign and file with the Clerk of the Tribunal a list giving the name and address of each exhibitor or distributor not named in the Demand whose business or property it is believed by such party may be affected by an award in the proceeding. The Clerk of the Tribunal shall forthwith deliver a copy of the Demand to each exhibitor and distributor named in any list filed by a defending party. Any exhibitor or distributor named either in the Demand or in any list filed by any defending party and any other exhibitor or distributor whose business or property may be affected by an award in the proceeding, may at any time prior to the commencement of the first hearing intervene and thereby become a party to the proceeding by filing with the Clerk of the Tribunal a statement which shall set forth his interest as an intervener in the proceeding and a submission as provided in subdivision 9 of Section XXII of the Decree and by paying a filing fee of $10.00 to the Clerk of the Tribunal. The Clerk of the Tribunal shall forthwith deliver notice of each intervention to each other party to the proceeding. Any party who intervenes more than fifteen days after the filing of the Demand shall not be entitled to participate in the selection of the arbitrator. If, at any time after the fifteenth day following the filing of the Demand and prior to the appointment of an arbitrator, all parties to a proceeding who become parties, by intervention or otherwise, on or before said fifteenth day shall by written agreement select another Tribunal as the Tribunal having jurisdiction and file such agreement with the Clerk of the Tribunal originally having jurisdiction, jurisdiction of the proceeding shall thereby be transferred to the tribunal so selected. Thereafter no further proceedings shall be had in the Tribunal originally having jurisdiction except that the Clerk thereof shall forthwith deliver notice of such transfer to the American Arbitration Association and shall forthwith deliver the entire file in such proceeding to the Clerk of the Tribunal so selected, who shall forthwith take the action prescribed in Rule III for the appointment of an Arbitrator from the Panel of Arbitrators for his Tribunal. II. Qualifications of Arbitrators No person shall be appointed a member of a Panel of Arbitrators established in ae EDITOR'S NOTE: For the convenience of exhibitors and others in the industry who may wish to familiarize themselves with the provisions of the Rules of Arbitration in the interim before the arbitration setup becomes operative, THE FILM DAILY today presents the official text. Inasmuch as it contains all those changes made subsequent to the publication of the original proposed draft on Oct. 30, its preservation for future guidance and reference is suggested. cordance with the Decree who has any financial interest in, or has or has had any connection with, the production, distribution or exhibition of motion pictures, or has or has had any interest in any motion picture theater, as landlord, lessor or otherwise. No member of a Panel shall serve as an arbitrator in any arbitration proceeding if he has or has had any financial or other relations with any party to the proceeding, or has any interest in the result of the proceeding, or has any personal bias, which might prejudice the right of any party to a fair and impartial award. III. Appointment of Arbitrators Not less than 15 nor more than 17 days after the filing of the Demand in accordance with Rule I, the Clerk of the Tribunal shall deliver to each party an identical list of arbitrators selected from the Panel of Arbitrators, for the purpose of enabling the parties to indicate thereon their preference of arbitrators. If the Clerk of the Tribunal does not receive the list from any party within seven days after the delivery of the list to such party, all the names on such list shall be deemed acceptable to such party. The Clerk of the Tribunal shall forthwith appoint an arbitrator from the names indicated as acceptable to all parties. In the event no name appears from the lists to be acceptable to all parties, or that none of those shown to be acceptable is available, the American Arbitration Association shall appoint an arbitrator from the remaining members of the Panel. Not less than 10 days after the filing of the Demand and prior to the appointment of an arbitrator, (or in the case of an arbitration of a controversy under either Section IV or Section VII of the Decree, at any time prior to the appointment of an arbitrator) the parties to any controversy may by written agreement unanimously appoint one or more arbitrators from the Panel of Arbitrators to arbitrate such controversy, by filing such agreement with the Clerk of the Tribunal. No irregularity in the appointment of an arbitrator shall affect the validity of the proceeding or of the award. Notice of appointment shall forthwith be given to the arbitrator by the Clerk of the Tribunal, and a signed acceptance obtained. IV. Removal of Arbitrator and Filling of Vacancy Upon written application of any party prior to the date the arbitrator's award becomes final, the American Arbitration Association shall, upon proof satisfactory to it that an arbitrator is. disqualified under Rule II, revoke the appointment of such arbitrator and declare the office vacant and the award, if any, vacated. No such action shall be taken by the American Arbitration Association in any case where an award has been made unless the applicant party shall have given five days notice of its application to all other parties. Unless application for disqualification is made immediately following a party's discovery of the reason therefor, such party shall be deemed to have waived such disqualification. The American Arbitration Association also may revoke the appointment of an arbitrator at any time by reason of his neglect, refusal or failure to perform the duties of his office. If the appointment of an arbitrator is revoked, or if by reason of resignation, death, or illness an arbitrator is unable to perform the duties of his office, a new arbitrator shall forthwith be appointed by the Clerk of the Tribunal from among the names acceptable to the parties or by the American Arbitration Association, in accordance with the second paragraph of Rule III. V. Hearings Hearings shall be held at the office of the Arbitration Tribunal having jurisdiction of the controversy involved or at such other place in the same Arbitration District as may be agreed upon by the parties with the consent of the arbitrator. Hearings shall commence as promptly as possible after the appointment of the arbitrator. The Arbitrator shall fix the time of the beginning of the hearing and may adjourn the hearing from time to time. The Clerk of the Tribunal shall deliver to the parties written notice of the name of the arbitrator and of the time and place of the beginning of the hearing at least five days prior thereto, unless such notice is waived by the parties. Vf. Procedure at Hearings The arbitrator shall take the oath of office in the form prescribed by the Administrator before commencing the hearing. Parties may appear personally and be represented by counsel or by others. Each party shall have the right to examine or cross-examine all witnesses. Witnesses shall testify under oath or its legal equivalent. Evidence shall be received only at hearings of which all parties shall have had due notice and the arbitrator in making his award shall consider only evidence so received and such inspections as he may make hereunder. The arbitrator shall have power to require any party to produce such records or documents as the arbitrator may deem necessary to a proper determination of the controversy. In lieu of producing or offering original records or documents, any party may, with the approval of the arbitrator, produce or offer sworn copies thereof or sworn excerpts of the relevant or material portions thereof. If any party challenges the authenticity, correctness or adequacy of such documents or excerpts, the arbitrator shall determine such authenticity, correctness or adequacy. All exhibits offered in evidence shall be numbered and so marked as to indicate whether or not they were received. The arbitrator shall be the judge of the relevancy and materiality of the evidence offered and conformity to legal rules of evidence shall not be necessary. Whenever the arbitrator deems it necessary he may make an inspection in connection with the subject matter of the controversy upon notice to the parties. The arbitrator may hear argument and receive briefs. VII. Closing and Reopening the Proceeding After all parties have indicated that they have no further evidence to offer, the arbitrator shall declare the proceeding closed. Prior to the expiration of the time for making an award the arbitrator may reopen a proceeding upon his own initiative, or for good cause upon the written application of any party on five days' notice to all other At any time within twenty days after the award has been filed the arbitrator may also reopen the proceding for the purpose of correcting inadvertent errors in the award. VIII. Defaults and Withdrawals If any party to a proceeding defaults by failure to comply with the fourth paragraph of Rule XI or withdraws from the proceeding after an arbitrator is appointed, the proceeding shall nevertheless continue to an award unless all other parties to the proceeding consent to a dismissal. A party who defaults or withdraws shall not be entitled to participate further in the proceeding but shall be bound by the award. IX. Powers of Arbitrators The arbitrator shall have the powers and shall perform the duties granted to and imposed upon him by the Decree and these Rules, and in making his award he shall comply with the Decree and these Rules. X. Awards The award shall be filed with the Clerk of the Tribunal within 30 days from the date of closing the proceeding, or from the date fixed by the arbitrator for the filing of briefs, whichever is later. The award shall be specific, shall contain such findings as are required by the Decree i and shall be signed by the arbitrator and ' acknowledged before a notary public or other officer duly authorized to administer oaths. In his award the arbitrator shall assess costs against the losing party or parties or apportion them among the parties as he may deem proper. Costs shall be limited to the arbitrator's fee and the filing fees. The Clerk of the Tribunal shall forthwith deliver a copy of the award and any corrected award to each party, with the date of filing endorsed thereon. The award or, if corrected, the corrected award shall become final and binding upon the parties upon the expiration of the time for filing a notice of appeal therefrom, unless an appeal is taken in accordance with these Rules. XL Arbitrator's Fees The American Arbitration Association shall fix for each Arbitration District the per diem rate of the arbitrator's fee which in no event shall exceed $50.00 per diem. The arbitrator shall be entitled to the per diem fee for each day or part thereof that he shall attend a nearing or make an inspection. Any expenses incurred by an arbitrator in making inspections as provided in Rule VI, or in conducting hearings at other places than the Tribunal office as provided in Rule V, shall be borne equally by the parties. No other compensation or expenses and no gratuities or benefits of any kind shall be paid to or conferred upon an arbitrator by any party. Prior to the commencement of each day's hearing or inspection, each party to the proceeding shall deposit with the Clerk of the Tribunal a sum equal to the arbitrator's per diem fee. Failure to make such deposit shall constitute a default. After the award is filed, the arbitrator shall be paid his fee out of the sums deposited oy the parties to the proceeding. The Clerk of the Tribunal shall return any undisbursed sums to the parties entitled thereto upon the final disposition of the controversy. XII. Stenographic Cost1 The Clerk of the Tribunal shall make the necessary arrangements for the taking of a stenographic record of the testimony when such a record is requested by one or more of the parties, who shall deposit the cost thereof with the Clerk of the Tribunal. Any party desiring a transcript of the stenographic record of the hearing shall pay the cost thereof and in the event that such party did not pay the cost of taking the stenographic record it shall reimburse the other party or parties for the cost thereof. V-Under Ride XIV no appeal can be taken unless three copies of the transcript of the record or an abbreviation thereof are filed with the Clerk of the Tribunal.) XIII. Extensions of Time The parties may in writing unanimously agree to extend the time specified in any of the foregoing rules and, except as to Rule X, the arbitrator may extend such time upon the written application of any party upon five days notice to all other parties. XIV. Notice of Appeal Any party to an arbitration proceeding may appeal from an award by filing a notice of appeal with, and paying a filing fee of $25.00 to, the Clerk of the Tribunal in which the award was made, not later than twenty days after the date of filing of the award or the corrected award. The Clerk of the Tribunal shall forthwith deliver a copy of the notice of appeal with the date of filing endorsed thereon to each party to the proceeding and to the Clerk of the Appeal Board. The appellant shall have made at his own expense, and, within ten days after filing the notice of appeal, shall file with the Clerk of the Tribunal in which the award was made, three copies of the transcript of the stenographic record of the hearing or such abbreviation thereof as may be agreed upon by the parties.