Chapter 3 - § 3.2 • THE GENERAL LAW, RULES, AND PROCEDURES OF ARBITRATION

• Jurisdiction: Colorado

§ 3.2 • THE GENERAL LAW, RULES, AND PROCEDURES OF ARBITRATION

Generally, arbitration is governed by the Colorado Constitution, state and federal statutes, rules of procedure, and the common law; the agreement to arbitrate, including any rules adopted by the parties; and the arbitrator's inherent power. Generally, the order of precedence in defining the rules governing arbitration is as follows, although it may depend on the issue involved:

1) The arbitration agreement of the parties, including incorporated rules such as those of the American Arbitration Association. Arbitration is a consensual process. Without the agreement of the parties to arbitrate, there is no arbitration. Within the broad confines of the statutes, the parties can design the arbitration process in any way they want — it is alternative dispute resolution (i.e., an alternative to litigation). Some of the restrictions on this discretion are discussed below. See § 3.3.2.
The agreement of the parties governs the arbitration, unless overridden by a statute or the common law. Examples of statutory provisions that in some jurisdictions cannot be overridden by the parties' agreement include: increasing the scope of subpoena power of arbitrators over non-parties, grounds for vacating arbitration awards (in some jurisdictions), the right to be represented by counsel (perhaps waivable at some juncture), motions to compel arbitration, and the scope of an appeal (in some jurisdictions). Generally, however, the agreement of the parties will govern most aspects of an arbitration process, and will govern the arbitrator.
2) Applicable statutes and rules, unless the statute or common law provides that the parties may "otherwise agree," and the parties have otherwise agreed. Some provisions of the arbitration statutes expressly provide that they apply to an arbitration event only upon the failure of the parties to otherwise agree: they are default provisions. For example, Federal Arbitration Act (FAA) § 5 applies if there is no agreement as to how the arbitrator is to be selected, or if an agreed method fails. The Colorado Revised Uniform Arbitration Act (CRUAA), C.R.S. § 13-22-215 (2016), applies if no agreement exists as to time and place of hearing and notification, adjournment, and postponement; right to be heard, present evidence, and cross-examine witnesses; and as to whether the arbitrator can give undue weight to hearsay.
Thus, a primary purpose of the arbitration statutes is to validate

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