The Surface Transportation Board (STB) has adopted final rules to modify its arbitration procedures in accordance with the requirements of the Surface Transportation Board Reauthorization Act. The P.L. 114-110 (2015) Act requires an arbitration process that is voluntary and binding, as with the STB’s existing arbitration rules.
Changes to arbitration procedures include:
- Mandating that rail rate disputes be eligible for voluntary arbitration (under previous STB rules, parties could elect arbitration of rate disputes in individual cases, but rate disputes were not automatically eligible for arbitration);
- Establishing caps for arbitral awards of $25,000,000 in rate disputes and $2,000,000 in unreasonable practice cases (including demurrage, accessorial charges, and misrouting/mishandling rail cars, among other issues);
- Requiring modifications to various aspects of the existing rules, such as commencing arbitration, maintaining a roster of qualified arbitrators, and selecting a single or lead arbitrator for a proceeding.
STB Chairman Daniel R. Elliott III said, “During my tenure as Chairman, I have advocated for greater use of alternative dispute resolution. The STB Reauthorization Act further enhances arbitration as an effective means to resolve disputes outside of formal litigation. The final rules are another accomplishment in leveraging the tools made available under the Act.”
The STB adopted the final rules implementing the requirements of the Act after receiving and considering public comment.