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Wright v. Jerry Fulks & Co.10/31/2005
des:
(a) The Parties shall cooperate in good faith in the voluntary, prompt and informal exchange of all non-privileged documents and other information relevant to the dispute or claim immediately after commencement of the Arbitration.
(c) Each Party may take one deposition of an opposing Party of one individual under the control of the opposing Party. The Parties shall attempt to agree on the time, location and duration of the deposition, and if the Parties do not agree these issues shall be determined by the Arbitrator. The necessity of additional depositions shall be determined by the Arbitrator based upon the reasonable need for the requested information, the availability of other discovery options and the burdensomeness of the request on the opposing Parties and the witness.
The informal rules of arbitration further the purpose of arbitration, which is to avoid the delay and expense of extended court proceedings. Aerojet-Gen. Corp. v. Am. Arbitration Ass'n, 478 F.2d 248, 251 (9th Cir. 1973); accord In re Y & A Group Sec. Litig. v. Y & A Group, Inc., 38 F.3d 380 (8th Cir. 1994). By waiting until the first day of trial to enforce the arbitration provision in the AIA contract, Wright incurred significant and unnecessary additional expense. We conclude Fulks' inexcusable delay in demanding arbitration resulted in prejudice to Wright.
CONCLUSION
Fulks' conduct was inconsistent with the right to arbitration and Fulks' unexcused delay in filing a motion to compel arbitration on the first day of trial was prejudicial to Wright. Fulks waived its right to arbitration and the trial court erred in granting Fulks' motion to compel arbitration. We reverse and remand for trial.
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