American Arbitration Association Launches Global Center for Dispute Resolution Research.

NEW YORK--(BUSINESS WIRE)--June 10, 1999--

$6.25 Million Funding for the First Dedicated Research Facility

in the Field

The American Arbitration Association announced here today that it is sponsoring the formation of the Global Center for Dispute Resolution Research. A highly autonomous, self-governing organization, the Global Center will be the first research facility dedicated to examining the use and effectiveness of dispute resolution practices on a worldwide basis.

"Over the past five years, there has been steady growth in the inclusion of dispute resolution provisions in business contracts - particularly in the international arena," William K. Slate II, President of the American Arbitration Association, commented. "This trend is being led by some of the nation's largest companies, and, while there is ample anecdotal evidence about the effectiveness of dispute resolution techniques, virtually no research has been done in the field. The willingness of these companies to rely on dispute resolution methods should not have to be an act of faith. What we are establishing is a center of research that will move the use of dispute resolution onto a new plane and significantly strengthen its effectiveness and broaden its acceptance as a mainstream business risk management tool."

The focus of the Global Center's work will be on gathering information about business-to-business disputes through global data collection, analysis, and independently sponsored research. The Global Center will have two governing bodies - a Board of Trustees, which will deal with governance and funding, and a Research Advisory Committee, which will establish the Global Center's research agenda, make grants to researchers, and ensure that rigorous methods of analysis are utilized in the research.

"The enthusiasm for this undertaking has been remarkable from the outset," Mr. Slate continued. "While we are seeking broad-based funding support for the Global Center, the AAA's own Board thought the project too important to delay and authorized an annual commitment of $1.25 million for each of the next five years. Similarly, those whom we have approached to participate have been quick to recognize the project's promise and potential importance, enabling us to attract a very strong group for both the Global Center's Board of Trustees and the Research Advisory Committee."

"When deciding to provide substantial seed money for the project, the AAA's own Board stressed the importance of the Global Center having a high degree of autonomy and not being compromised by narrow interests," explained Richard W. Naimark, AAA Senior Vice President and Executive Director of the Global Center for Dispute Resolution Research. "That dictate has been a key factor in helping us to bring together a Board that has the prestige and the skills to help the make the Global Center a true force for improving the quality and impact of dispute resolution services."

Members of the Board of Trustees include: The Hon. William H. Webster of Milbank, Tweed, Hadley & McCloy, LLP and former director of the Federal Bureau of Investigation and the Central Intelligence Agency; Robert R. Briner, Esq. Chairman of the International Court of Arbitration of the International Chamber of Commerce (ICC) in Paris; and, Roberta Cooper Ramo, Esq., past president of the American Bar Association, to name a few.

Given the confidentiality of most mediation and arbitration, the primary barrier to valid dispute resolution research in the past has been poor data resources. One of the most important objectives of the Global Center is to assure that data collection, which will be undertaken through a global network of agencies and practitioners - including organizations that compete with the AAA - is as comprehensive as possible. The database will be computer maintained, with safeguards for completeness, accuracy and confidentiality. Members of organizations such as the International Federation of Commercial Arbitration Institutions (IFCAI) who participate in the data-gathering by submitting case-related information will be invited to private briefings on trends and practice patterns in the field derived from analysis of the data gathered.

The Global Center will sponsor two types of research - pattern and trend analysis of the collected data and designed experiment research. The former will examine global trends in dispute resolution by industry, country, and process type along with forces in the marketplace that lead to caseload fluctuations in different sectors. The designed experiment portion of the research will seek to evaluate specific aspects of dispute resolution processes such as cost effectiveness, time savings, quality of results, satisfaction levels of participants, and ways in which results may be optimized.

The work of the Global Center will be disseminated through periodic conferences here and overseas and through publications highlighting research work completed and its application.

The leader in conflict management since 1926, the American Arbitration Association is a not-for-profit, public service organization dedicated to the resolution of disputes through the use of negotiation, mediation, arbitration and other voluntary procedures. In 1998, more than 95,000 cases were filed with the Association in a full range of matters. Through 37 offices nationwide and cooperative agreements with arbitral institutions in 38 other nations, the AAA provides a forum for the hearing of disputes, rules and procedures and a roster of impartial experts to hear and resolve cases.