Proving Damages and Reductions: Explanation and Evidence
Part of our arbitrator training includes the directive that arbitrators are to base their decisions on facts, and facts are established when contentions are supported by evidence.
Since Respondents are the ones to challenge the validity of the Applicant's damages, they would first present arguments explaining why the deductions are taken and why the deductions are not owed by the Respondent. In support of their arguments, Respondents should submit evidence related to the damages in dispute. When both arguments in the Dispute Damages tab and evidence are submitted, the arbitrator decides how the resulting fact will impact his or her decision.
Similarly, when an Applicant becomes aware that damages are being disputed, it should confirm it has addressed the specific issues in both its contentions and evidence. Why were OEM parts used or why was that particular labor rate paid? Was there a specific reason that flex, corrosion protection, or denib and finesse were included and paid? More specifically, why does it feel that the Respondent owes these expenses? Just because the Applicant pays for certain repairs doesn't mean the Respondent automatically owes them.
Proving a damage dispute or supporting damages paid is no different than proving liability. Make the arguments in your contentions or Dispute Damages tab, and back up those arguments by submitting supporting evidence. Facts are what arbitrators will use when rendering decisions, and facts are created by the presence of contentions, or arguments in the Dispute Damages tab, and evidence.
Article published in: September 2015 E-Bulletin