Chapter 19 - § 19.9 • VENUE OF THE ARBITRATION

• Jurisdiction: Colorado

§ 19.9 • VENUE OF THE ARBITRATION

The phrase "venue for the arbitration" refers to the location where the hearing will be held, but if the arbitration is conducted by telephone, where is the venue?

Prior to a hearing, there may be no venue for the arbitration. For example, the arbitrator or arbitrators may be from states distant from the events giving rise to the arbitration. The parties may be citizens of different states. If the American Arbitration Association (AAA) administers the arbitration, the office administering the arbitration may be at a location distant from any operative facts.

Thus, a distinguishing characteristic of arbitration is that all pre-hearing proceedings and procedures may be conducted by mail, e-mail, fax, and telephone — not necessarily in person. Thus, "venue" may be irrelevant until the location of the hearing is to be considered, if the hearing is to be live and in person.

§ 19.9.1—Venue Of Arbitration Defined By Statute

FAA

Section 4 of the FAA defines that if a motion compelling arbitration is granted, "[t]he hearing and proceedings, under such an agreement, shall be within the district in which the petition for an order directing such arbitration is filed." Thus, even absent a motion, this section perhaps defines venue for the hearing in the district in which a motion to compel could be filed, and the court would have jurisdiction over the parties.

The reference to "district" in § 4 is to districts of the federal district courts. When the FAA is applied by the state court, its meaning is unclear. However, since the District of Colorado has the same geographical boundaries as the State of Colorado, its meaning and applicability to the state court probably is irrelevant.

CRUAA

The CRUAA, C.R.S. § 13-22-215(3) (2016), provides that if the arbitrator orders a hearing, the arbitrator shall set a time and place.

Where parties cannot agree on an arbitration hearing site, under common law the arbitrator makes that determination, unless the parties' agreement provides otherwise.⁶⁴

§ 19.9.2—Contractual Forum Selection

None of the arbitration statutes defines the venue for arbitration. Forum selection clauses in arbitration agreements are prima facie valid.⁶⁵ However, like a forum (venue) selection clause for the location of litigation, sometimes the clause will not be enforced. For example, a California appeals court denied a motion to compel arbitration of a dispute between a telecommunications provider and its customers.⁶⁶ The court recognized that forum selection clauses in arbitration agreements generally are valid and enforceable; however, the court held that a forum selection clause naming Georgia as the site for arbitration imposed an unreasonable geographic barrier to the resolution of small dollar claims by...