The most widely read magazine for Canadian lawyers
Issue link: https://digital.canadianlawyermag.com/i/50858
LEGAL REPORT: ADR the past 10 years for insurance compa- nies, third-party administrators, self-in- sured entities, and municipalities. More than 150,000 U.S. lawyers have also regis- tered with the system, with 30,000 having used it to settle cases. Large Canadian municipalities should take note of New York City's experience with CyberSettle. It started using the system in 2004, and by 2009 had used it to settle over 4,000 personal injury and property damage claims, valued at nearly $47 million. The city estimated the online system saved it about $70 million in litigation costs over that period. San Jose, Calif., e-commerce giant eBay, and its subsidiary PayPal, have also taken to ODR over the past decade. The company now manages over 60 mil- lion disputes each year, many of which require no human mediator whatsoever, says PayPal's ODR director Colin Rule. Since its initial experiment with the now- defunct SquareTrade, eBay has brought its system in-house. With Rule leading the way, it has developed software pro- grams to replace tasks previously handled by arbitrators and mediators, allowing it to provide ODR in 16 different lan- guages for its various properties around the world. Rule now considers eBay's ODR system the largest in the world by volume. That users pay about $20 to use it has surely played a role in that achieve- ment. These are just two of the worldwide success stories for Internet-based dis- pute resolution. ICANN continues to use ODR to manage the high volume of domain-name disputes it manages; all European Union member nations have signed onto a small claims court project; Michigan dabbled with an e-trial and cyber court system before the economic recession took hold and squeezed the budget; and Mexico has undertaken an ambitious online system to manage con- sumer disputes with large corporations. A few Canadian projects could soon be added to this list of ODR tri- umphs. Smartsettle, a company based in Abbotsford, B.C., planned to have its own small-claims style ODR system up and running by the end of the summer, says president, CEO, and inventor Ernest Thiessen. The Smartsettle One system features a proprietary "visual blind bid- ding" system that will display proposals and suggestions to all parties in a single- issue dispute. The system will permit asynchronous progress of disputes, allow- ing parties to work toward a resolution despite conflicting schedules. Thiessen says the cost has yet to be worked out, but is likely to run around $200 per user. On the government side, British Columbia's Ministry of the Attorney General hopes to soon roll out Canada's first public-sector ODR pilot project for its Small Claims Court. The program would largely focus on quantifiable dis- putes, such as debt claims, perhaps valued up to $10,000. The ministry's motivation to move online stems partially from a problem familiar to many employers: the impending mass retirement of baby boomers is expected to leave a big hole in its workforce. The shift also makes sense Commercial Arbitration in Canada A Guide to Domestic and International Arbitrations A voice of authority when you want a thorough understanding of each stage of the process This resource addresses both the statutory and common law context within which international and domestic arbitrations are conducted. It considers issues arising from the interrelationship between arbitral and judicial proceedings, including the enforceability, severability and scope of arbitration clauses. It also covers the availability of stays of proceedings and rights of appeal. Benefit from: • discussion regarding why one might go to arbitration • discussion of stays of litigation, appeals and enforcement awards • advice on drafting an agreement to go to arbitration, procedure and termination of arbitration • case summaries ORDER your copy today Looseleaf & binder • $215 Releases invoiced separately (1-2/yr) P/C 0120030000 ISBN 0-88804-395-3 • appendices including federal, Ontario and British Columbia arbitration legislation This invaluable looseleaf service summarizes the historical background to arbitration as a form of dispute resolution, as well as the evolution of public policy promoting arbitral autonomy. Both statute and common law of all Canadian jurisdiction is covered. For a 30-day, no-risk evaluation call: 1.800.565.6967 CL0910 Canada Law Book, a Thomson Reuters business. Prices subject to change without notice, to applicable taxes and shipping & handling. 40 SEPTEMBER 2010 www. C ANADIAN Law ye rmag.com J. Kenneth McEwan, Q.C. and Ludmila B. H erbst