The Pros and Cons: Arbitration or Litigation. JAMS or AAA?

By: Steven G. Kaplan and Patrick Bowers

Disputes happen all the time.  Most disputes are minor and resolved between parties without involving a third party.  But where parties cannot resolve their disputes--and because we live in an alleged civilized society in which we strongly discourage private resolution of conflict by means labeled “anti-social” (e.g., dueling)—a third party is called in to assist in resolving the dispute.  You pay your taxes (probably) so why not get your money’s worth and take your dispute to court.  If dueling is frowned upon, what’s left other than rushing to court?  Let’s consider binding arbitration.

Arbitration pro:  Speedier resolution, however, this is not always the case due to numerous parties, arbitrators, lawyers, and litigation strategies. 

Litigation pro:  There is a large body of substantive law and procedure which automatically organizes the lawsuit and the parties don’t have to create the rules that will govern the dispute.

Arbitration pro:  Less costly, however, this might not always be the case due to numerous parties, arbitrators, lawyers, and litigation strategies.   

Litigation pro:  The judge, by law, must be impartial and the judge’s salary does not depend upon whether the parties ever use that particular judge in a future matter.  The judge is not personally affected by the outcome of the dispute. 

Arbitration pro:  Exclusionary rules of evidence don’t apply.  Everything can be admitted into evidence so long as relevant and non-cumulative. 

Litigation pro:  Trial takes place in the courthouse and therefore neutral territory.

Arbitration pro:  Not a public hearing.  There is no public record of the proceedings. 

Litigation pro:  If a litigant is unhappy with the court’s decision an appeal might be possible.

Arbitration pro:  From a defense point of view, there is reduced risk of punitive damages and run away juries.

Once the parties choose binding arbitration over litigation, either in the contract or after the dispute arises, they must then choose an arbitration body, the most prominent being JAMS and the American Arbitration Association (AAA). 

Yippee!  You won an award in binding arbitration.  Well, don’t pop the champagne cork just yet.  With JAMS, even if you win an award, it will not give you your award until you pay the arbitrator fees.  So you have racked up quite the tab for arbitrator fees.  No problem; I can pay with part of my award, right?  Nope.  You must pay the arbitrator fees with money apart from the award. 

On the other hand, AAA will release your award without full payment of the arbitrator fees.  That way you can pay the arbitrator fees with part of your award, pop the champagne cork, and move on with your life.  Cheers!       

Navigating the Cannes Film Festival

By:  Steven G. Kaplan.   Whether it is your first or twelfth time to the Cannes Film Festival, this article will help you navigate the complexity of the festival and market. I first attended Cannes in 1999 to support the international sales efforts on my first feature, TERROR TRACT. Since then, I've attended the festival every year so my comments derive from personal experience (some painful, some not).

1. Stay in Cannes. I really cannot emphasize enough how important it is to stay in Cannes and not outside. Walking distance from the Palais (where most of the sellers have their offices) and the hotel row on the Croisette is critical. Sole exception would be the Hotel Du Cap, particularly if you are a financier or just want your privacy, then Du Cap is the place to be. Most of the major film industry heavy weights stay there, but it is a 25 minute drive into the part of town where most of the action is. Don’t stay at Du Cap if your meetings and events mostly take place in town. The best locations to stay would be center pointe on the Rue la Croisette, between the Majestic Hotel and the Carlton Hotel, or in an apartment behind those hotels to the main drag. Another great option is staying on a yacht. Even though the staterooms tend to be small, there is nothing like the convenience and glamour of spending your time in Cannes on a yacht.

2. Rent a Car? What’s the point? You have to hassle with parking, the expense and everything that goes with that. Taxis are plentiful and don’t cost that much. Exception would be if you are staying out of town or at Du Cap.
3. What About My Stuff? There is a fair amount of risk of theft or loss of your personal possessions. I follow a very simple rule: carry everything on your body that you can absolutely not afford to lose. This includes your passport, money and credit cards. Hide everything you care about otherwise in your room. Only leave things behind that you care nothing about. With iPads and tablet devices, laptop is no longer necessary unless you are doing heavy duty writing or drafting documents.
4. Advance Planning. The best way to make Cannes effective is to plan in advance. There is so much happening that the chaos theory frequently rules. I find that starting your meetings at 11 a.m. is most effective to avoid last minute cancellations from too much partying the night before. Schedule meetings and events in advance but remain flexible as everyone’s schedule is constantly in flux. A typical day would include numerous meetings, cocktail hours (2 or 3), dinner meeting, premiere and afterparty.
5. Things to Pack. Necessities: bring a Tux or Formal Dress, a passport and credit cards (better exchange rate). All of the screenings at the Luminere (the superbowl of movie theaters) require formal wear for the men (including bow tie- NO neckties allowed) and formal dress for the ladies. They won’t let you in without it.
6. Credentials. You must get a Marche du Film credential if you want to see any screenings. A market badge is critical if you want to enter the Palais to meet with buyers or sellers. If you have produced or executive produced a film, register for the Producer’s Network. American Pavilion pass is good if its your first time in Cannes at the festival and need a good meeting spot with WiFi.
7. Pace Yourself. The Cannes Film Festival is a whirlwind of meetings, panels, network opportunities, red carpet premieres, yacht parties, late night drinks and rockstar parties. Pace yourself (see #4). Need I say more?
Most importantly, have fun and don’t get too stressed.  After all, you are in Cannes for the Superbowl of film festivals and film markets. It could be worse.
Entertainment Law Partners will be in attendance at the Cannes Film Festival from May 17-23. To set a meeting to discuss your project, please email us.                       

COPYRIGHT & DISCLAIMER
Steven G. Kaplan is Partner at Entertainment Law Partners dedicated to corporate, business and entertainment affairs.  You may contact him at Steve@entlawpartners.com.

Steven G. Kaplan grants column recipients permission to copy and distribute this column and distribute it free of charge, provided that copies are distributed for educational and non-profit use, no changes or revisions are made, all copies clearly attribute the article to its author and include its copyright notice.

DISCLAIMER: Readers should consult with a lawyer before solely relying on any information contained herein.

2012 Catalina Soiree in celebration of the Catalina Film Festival