Rules and Procedures for the

Arbitration of

Home Inspection Disputes

Introduction

   Construction Arbitration & Mediation Services (CAMS) is a private, independent impartial organization which administers dispute resolution procedures.

   The following rules govern the initiation, conduct, and administration of the expedited Arbitration Procedure.  These rules apply to the extent that they are consistent with applicable statutes or with the agreement of the parties.  The parties shall be deemed to have agreed to these rules at the commencement of the Expedited Arbitration Hearing.

1.  Initiation of the Expedited Arbitration Proceeding

a.    Arbitration is initiated by the submission of a CAMS Demand for

      Arbitration form to the responding party and a copy of the demand to CAMS.

b.   The proper fee shall accompany the demand [as determined under Section

       Six (6) of these rules].

c.   After initiation of the Expedited Arbitration, no new or different claims

may be added without the written agreement of all parties and the consent of the Arbitrator.

2.  Appointment of the Arbitrator

a. CAMS shall appoint a single Arbitrator from its panel of Arbitrators who are

      knowledgeable in both residential construction and home inspection.                                                                     

b.   No person shall serve as an Arbitrator in any arbitration in which the

person has any financial or personal interest in the result of the arbitration.

Prior to accepting an appointment, the prospective Arbitrator shall disclose

any information likely to prevent a prompt hearing or to create a presumption

      of bias.  Upon receipt of such information, CAMS shall determine whether the arbitrator

      should be disqualified and inform the parties of it decision, which shall be conclusive.

c.   CAMS is authorized to appoint another Arbitrator if a vacancy occurs or if

        an appointed Arbitrator is unable to serve promptly.

3.  The Arbitration Hearing:  Time and Site

a.   The hearing will be held at the home site whenever possible or such other

      suitable place as the Arbitrator may designate

b.   The Arbitrator shall establish a date and time for the hearing.

c.   Notice must be given to the parties at least five (5) business days in

      advance of the hearing.

4.  Conduct of the Arbitration Hearing

a.  Attendance

        (i).   Any party may be represented at the hearing.

                  (ii).   All persons having a direct interest in the arbitration as well as

                           representatives and witnesses are entitled to attend the hearing.  The

                           Arbitrator shall determine whether any other person may attend the

                           hearing.

                  (iii).   At any time during the proceeding, the Arbitrator may attempt to

                 mediate the dispute or any issue within the proceeding.  When

         attempting mediation, the Arbitrator may use techniques which include

         separate discussions with each party.  Any agreement reached shall be

         memorialized in writing and signed by all parties.

                    (iv).   The arbitration may proceed in the absence of any party who, after due

                   notice shall be five (5) working days.

         (v).   An award shall not be made solely on the default of a party; the

                 Arbitrator shall require the attending party to submit supporting

                             evidence.

 b.    Evidence

          (i).   The Arbitrator shall be the sole judge of the relevance and materiality of

                 the evidence offered.

          (ii).   The Arbitrator may receive and consider documentary evidence.

                  Documents to be considered by the Arbitrator may be submitted prior to

                  the hearing.  A copy should be sent to the Arbitrator with copies

                  simultaneously sent to all other parties.

c.   Proceedings

            (i).   The hearing shall be conducted by the Arbitrator in any manner

      which will permit full and expeditious presentation of the case by both

      parties.  Normally, the hearing shall be completed in one session;

      in order to obtain additional  evidence or for other good cause, the

          Arbitrator may schedule an additional hearing normally within seven

      (7) days.

          (ii).   Hearings shall be adjourned by the Arbitrator only for good cause.

         (iii).   There is no requirement that a stenographic record be taken of the

      proceedings, but any party may make such a provision prior to the

      arbitration and, at his or his own expense, record the hearing.

         (iv).   The Arbitrator shall ask whether parties have further proof to offer

                             or witnesses to be heard.  Upon receiving negative replies, the

                             Arbitrator shall declare the hearing closed.

d.  The Award

             (i).   The Award shall be rendered by the Arbitrator no more than twenty

                  (20) working days from the date of the hearing.

           (ii).   The Award shall be in writing and shall be signed by the Arbitrator.

                               Findings of the Arbitrator shall be in summary form.

           (iii).   Parties shall accept as legal delivery of the Award the placing of

                               such Award or true copy thereof addressed to such party at its last

                               known address or to its attorney, or personal service of the Award

                               or the filing of the Award in any manner which may be presented by

                               law.

5.  Other

  a.  The Arbitrator shall interpret and apply these rules insofar as they relate to his or her powers and duties.  All other rules shall be interpreted and applied by CAMS.

b.  Any party who proceeds with the arbitration with the knowledge that any provisions or requirements of these rules have not been complied with and who fails to state objection thereto in writing, shall be deemed to have waived his or her rights to object

c.  Any papers or process necessary or proper for the initiation or continuation of any arbitration under these rules and/or any court action in connection therewith or for the entry of judgment on an award made there under, may be served upon any party, (a) by mail addressed to such party or its attorney at its last known address, or (b) by personal service.

6.  Fees and Expenses

a.  Fees

                    (i).   An administrative fee in the amount of $1250.00 shall be advanced by the

                           claiming party; payment shall accompany the Demand for Arbitration.

                This fee generally includes the entire Arbitrator’s fee for the hearing.

                The Arbitrator’s per diem fee may be higher depending on specific  requirements the parties may have with regard to the Arbitrator’s experience.

                    (ii).   No refund of the fee is made by CAMS when a matter is withdrawn or

                            settled by the parties after the filing of the Demand for Arbitration.

                    (iii).   Contact CAMS for any additional service fees.

b.  Expenses

                     (i).   The expenses of the witnesses, expert witnesses or reports for either side

                            shall be paid by the party providing such witnesses or reports.

                     (ii).   Travel expenses shall be paid to CAMS when the arbitration is scheduled

                            more than 50 miles from the Arbitrator’s residence.

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