Code of Ethics

The NACHI-ADRS Code of Ethics

For Arbitrators and Mediators in Disputes involving Home Inspections

PREAMBLE

The use of arbitration and mediation to resolve a wide variety of Home Inspection-related  disputes, is a new offering from NACHI, and is currently an exclusive offering, available only to NACHI members.

Though nothing new, alternate means of dispute resolution has grown extensively in recent years. Persons who act as arbitrators in these proceedings have certain ethical obligations to the Parties. As such, this Code of Ethics was developed to provide guidance in these areas.

As stated, this Code of Ethics (COE) provides ethical guidelines specifically related to NACHI ADRS.  As ADRS deals specifically with Home Inspection-related disputes, and nothing else, our scope is narrow as compared to similar services offered by other organizations. We believe this puts NACHI's ADRS at a distinct advantage over all others, both in the realm of ethical behavior, as well as industry expertise. It allows us to concentrate our efforts within the confines of situations we are familiar with, and also allowed us to script a true COE which is easy to comprehend and abide by.

NACHI ADRS proceedings are arbitrated pursuant to voluntary agreement of the parties, as presented in the Inspector’s Inspection Agreement. This Code applies to all proceedings in which disputes or claims are submitted for decision to ADRS in the manner as prescribed in the Inspection Agreement, signed by the Parties prior to, or at the time of the inspection. In all such cases, those with the authority to mediate or arbitrate have an ethical duty, and therefore must observe fundamental standards of ethical conduct. In this Code, all such persons are called “arbitrators”, “mediators”, or “neutrals”.

Arbitrators have the authority and power to decide cases. However, ADRS decisions are non-binding. As such NACHI ADRS recognizes this clear distinction between our arbitrators and actual judges

NACHI ADRS believes that it is paramount for all arbitrators and mediators to be neutral; that is, independent and impartial, and to comply with these same ethical standards. This Code establishes a presumption of neutrality for all arbitrators. The COE expects all arbitrators to preserve the integrity and fairness of the process.

NACHI ADRS

Code of Ethics

 1.   UPHOLDING FAIRNESS AND INTEGRITY DURING THE PROCESS OF

       ARBITRATION AND MEDIATION

1.1. An arbitrator/mediator  has a responsibility not only to the parties but also to the processes of arbitration and mediation, themselves, and must observe high standards of conduct so that the integrity and fairness of these processes are upheld.

1.2. Arbitrators and mediators should conduct themselves in a way that is fair to all parties and should not be swayed by outside pressure. They should avoid any and all conduct and/or statements, which give the appearance of partiality for, or against, any Party.

1.3. The arbitrator/mediator should conduct the arbitration/mediation process so as to advance the fair and efficient resolution of the matters submitted for decision.

1.4. The ethical obligations of an arbitrator/mediator begin upon acceptance of the appointment and continue throughout all stages of the proceeding.

1.5. NACHI ADRS arbitrators and mediators are not partial or prejudiced by having acquired knowledge of customs and practices of the business involved. To the contrary, NACHI ADRS arbitrators and mediators possess specific knowledge and expertise in the field of Home Inspections, business practice, commerce, and relevant technologies, which put them in a unique position to help arbitrate and/or mediate amicable and fair settlements.

1.6. Arbitrators retain the right, by virtue of experience or expertise, to have views on certain issues, which may arise during the proceedings. However, an arbitrator or mediator may not prejudge any of the specific factual determinations, which may be addressed during said proceedings. At any time, and for any reason determined in the arbitrator’s or mediator’s sole discretion, said authority may engage in discourse with the parties, draw out arguments or contentions, make comments regarding evidence, make interim rulings, and otherwise control or direct the proceedings. It should be understood by all Parties involved, either directly or indirectly, that any or all of these activities are integral parts of an arbitration and/or mediation proceeding.

2.     DUTY TO DISCLOSE

2.1   An Arbitrator should disclose any interest or relationship likely to affect
impartially or which might create and appearance of partiality.

2.1.1 Persons who are performing the duties of arbitrator or mediator should
disclose:

▪ outcome of the proceeding;

▪ any known existing or past financial, business, professional or
personal relationships which might reasonably affect   impartiality or lack of independence in the eyes of any of the parties.

▪ any such relationships involving family or household members.;

▪ the nature and extent of any prior knowledge they may have of the dispute.

3.1.   An arbitrator should avoid impropriety or the appearance of impropriety in
 communicating with the parties.

3.1.1.Communication is a key ingredient to any arbitration/mediation  proceeding. As   such, it is important for the arbitrator/mediator to conduct
himself/herself in a manner, which avoids any appearance of impropriety   in communication with the parties.

As such, an arbitrator/mediator should not discuss a proceeding with any party in the absence of any other party, except in any of the following circumstances: except as it may pertain to a question or clarification as to evidence which may be required, and the arbitrator may ask about the identities parties, witnesses, and the general nature of the case; logistical matters, such as setting the time and methodology for hearings or filings, submission of evidence, or making any other arrangements pertaining to a proceeding.

3.1.2.Whenever the arbitrator/mediator receives any written communication
concerning the case from one party, which has not already been sent to
the opposing party, he/she may send or order it sent to the other party.

4.    AN ARBITRATOR/MEDIATOR SHALL CONDUCT THE PROCEEDINGS FAIRLY AND
       DILIGENTLY

4.1. An arbitrator should conduct the proceedings in an even-handed manner. The arbitrator should be patient and courteous to the parties, their representatives, and the witnesses and should encourage similar conduct by all participants.

4.2. The arbitrator should allow each party a fair opportunity to present its evidence and arguments.

4.3. If a party fails to respond after due notice, the arbitrator should proceed with the arbitration when authorized to do so, but only after receiving assurance that appropriate notice has been given to the non-responding party.

4.4. When the arbitrator determines that more information than has been presented by the parties is required to decide the case, it is not improper for the arbitrator to ask questions, contact witnesses, and request documents or other evidence, including written statements from witnesses.

5.   THE ARBITRATOR/MEDIATOR SHOULD MAKE DECISIONS IN A JUST,  
       INDEPENDENT AND DELIBERATE MANNER.  

5.1.  The arbitrator/mediator should, after careful deliberation, decide all issues submitted for determination. An arbitrator shall be bound to decide on those issues presented, and those alone. 

5.2.  An arbitrator/mediator should decide all matters justly, exercising independent judgment, and should not permit outside pressure to affect the decision.

5.3.   In the event that all parties agree upon a settlement of issues in dispute, the arbitrator/mediator should state in the award that it is based on an agreement of the parties.

6.   THE ARBITRATOR/MEDIATOR SHOULD BE FAITHFUL TO THE RELATIONSHIP OF

      TRUST AND CONFIDENTIALITY AS THEY PERTAIN TO FAIRNESS IN THE

      PROCEEDINGS.

6.1. The arbitrator/mediator is in a relationship of trust to the parties and should not, at any time, use confidential information acquired during the arbitration or mediation proceeding to gain personal advantage or advantage for any other party.

6.2. The arbitrator should not inform anyone of any decision in advance of the time it is given to all parties, or for a mediator to discuss settlement terms specific to a proceeding prior to the outcome of said proceeding.  

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