March 26, 2008
I support this new proposed rule change. As an attorney, who concentrates in representing investors, I believe the proposed rule will make the arbitration process fairer and more equitable.
To point out some of the main issues with the new rule, it would require panels to articulate the reasons for granting a motion to dismiss. Currently, there is no provision mandating why a case is dismissed and thus, prevents an aggrieved investor from going to court.
The new rule will avoid respondents from filing frivolous motions to dismiss before the claimant presents his case at hearing. Currently, motions to dismiss are filed on a regular basis by respondents at the inception of the arbitration, regardless of merit. At the hearing, another motion to dismiss is invariably made with no repercussions. The new rule will require respondent to pay forum fees if the motion to dismiss is denied as well as, possible attorney fees or sanctions. This will serve as a deterrent for frivolous motions.
While this rule is not perfect, it is a step in the right direction to establish a fair arbitration system. I urge and encourage the acceptance of this proposed new rule.