Chapter 12 - § 12.4 • PLEADINGS: DEMAND, ANSWER, AND COUNTERCLAIM

• Jurisdiction: Colorado

§ 12.4 • PLEADINGS: DEMAND, ANSWER, AND COUNTERCLAIM

Arbitration often is characterized by the sparseness of pleadings. On the other hand, the file can become as extensive as any court proceeding.

See Chapter 26.

§ 12.4.1—Demand

As indicated above, the FAA does not have any provisions with respect to the form or contents of a notice or demand for arbitration. Section 209 of the CRUAA requires that the notice "shall describe the nature of the controversy and remedies sought." However, given that the FAA does not have any provisions, and the issue also does not appear to have been the subject of judicial decision, it is likely that the requirement under all acts is nothing more than naming the parties and stating that there is a controversy within the scope of an arbitration agreement.⁵ Thereafter, the arbitrator can ensure full disclosure of the claims so that the respondent will not be surprised.

The AAA rules define its requirements.

The notice probably must be in English when served on an English-speaking entity, if the recipient has no reason to know the contents.⁶

§ 12.4.2—Manner Of Service Of The Demand: Notice

Unless a person objects for lack or insufficiency of notice under FAA § 15(c) not later than the beginning of the arbitration hearing, the person, by appearing at the hearing, waives any objection to lack of or insufficiency of notice.

By custom, and perhaps common law, the issue has always been whether the respondent in fact received notice of the demand, without formality as to the manner of service. The FAA does not have provisions with respect to service of the notice or demand for arbitration. As quoted above, the CRUAA provides in § 209(1) that notice be given to the other parties to the agreement to arbitrate "in the agreed manner between the parties, or in the absence of agreement, by certified or registered mail, return receipt requested and obtained, or by service as authorized by law for the commencement of a civil action." In Colorado, "service as authorized by law for the commencement of a civil action" is defined by C.R.C.P. 4 and F.R.C.P. 4.

The CRUAA, C.R.S. § 13-22-209, provides that "[a] person may initiate an arbitration proceeding by giving notice in a record to the other parties to the agreement. . . . The notice shall describe the nature of the controversy and the remedy sought." For example, where the parties' contract contains an arbitration clause, a letter by the attorney for the claimant asserting unpaid amounts, demanding payment within 10 business days, and stating that failure to pay in full will result in the creditor's moving forward to protect its legal rights, does not constitute notice of the arbitration.⁷ The Colorado Court of Appeals has found a notice insufficient where it failed to inform the respondent of the pendency of an arbitration.⁸

C.R.S. §...