AIM suit against Webb must go to arbitration first

AIM’s lawyers says that according to the court’s rules, the parties must attempt alternative dispute resolution before the case can go to trial. “It appears the parties will attempt to submit the case to non-binding mediation. This likely will not occur until after the new year.”

The California court that is hearing the case says that assigning the case to an ADR process generally does not affect the status of a case in litigation. Judges sometimes postpone case management or status conferences until after the parties have had an ADR session. However, if the case does not settle through ADR, it remains on the litigation track.

Under the arbitration process in California, the clerk will select an arbitrator from a list of ten arbitrators randomly selected from the court’s panel. The two sides will present their cases and the arbitrator will decide on an award, informing both sides of the outcome.

The award is then sealed and not disclosed to any judge who might be assigned to the case later. If neither side appeals the award or demands a trial within 30 days of the award, the award will be entered as a judgment with the same force and effect as a judgment of the court in a civil action, except that it can’t be appealed.