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| Part 4 - Dispute Resolution |
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| Division 1 - Dispute Resolution Requirements |
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Mediation and arbitration requirements |
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5 |
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Every contract or subcontract must provide that all disputes that have arisen or may arise between the parties to the contract or subcontract under or in connection with the contract or subcontract will be referred to mediation and, if not resolved by the parties through mediation, will be referred to arbitration. |
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| Division 2 - Dispute Resolution System |
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Dispute resolution rules |
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6 |
(1) |
If an arbitration has been commenced under this Part or  section 23, 25, 32, 33.1, 33.43, 33.5 or 33.51 , the arbitration must be conducted under rules determined by the arbitrator to be most appropriate for conducting the arbitration in a cost effective manner within the time frames allowed, including, without restriction, rules for any |
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(a) |
exchange of documents, |
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(b) |
discovery of parties, |
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(c) |
if the dispute is a rate dispute, disclosure of fair market rates by either party under section 25, |
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(d) |
if the dispute is a rate dispute, capacity for peers to provide information or opinions on fair market rates and on the considerations described in section 26.01 (2), |
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(e) |
manner in which evidence is to be tendered, including the number of witnesses from each party, the use of affidavit evidence, the use of witness statements and the amount of time each party will have to tender evidence and to examine witnesses, and |
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(f) |
other matters related to efficient and effective conduct of the arbitration. |
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(2) |
Subject to this Part and to section 23, 25, 25.2, 32, 33.1, 33.43, 33.5 and 33.51, the Commercial Arbitration Act applies to the arbitration of disputes arising under or in connection with a contract or subcontract, and for that purpose the Commercial Arbitration Act is adopted as part of the dispute resolution system under this Part 4. |
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(3) |
Except as otherwise provided for in subsection (1) of this section and sections 23, 25, 25.2, 32 and 33.5, the mediation and arbitration of a dispute arising under or in connection with a contract or subcontract will be conducted in accordance with the requirements of section 8. |
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Registered mediators and arbitrators |
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7 |
(1) |
The minister must designate and register in a register to be called the Register of Timber Harvesting Contract and Subcontract Mediators and Arbitrators |
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(a) |
5 or more registered mediators, and |
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(b) |
5 or more registered arbitrators
who are not licence holders, contractors or subcontractors and whom the minister considers are impartial in disputes between licence holders and contractors or between contractors and subcontractors. |
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(2) |
A person may be designated as both a registered mediator and a registered arbitrator. |
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(3) |
On request, the regional manager must provide to whoever makes the request a copy of the Register of Timber Harvesting Contract and Subcontract Mediators and Arbitrators. |
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Mediation and arbitration proceedings |
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8 |
(1) |
A party to a dispute may commence proceedings under this Division to resolve the dispute by delivering to the other party to the contract or subcontract, and to the Deputy Minister of Forests, a notice of dispute specifying the nature of the dispute and requesting mediation and arbitration under this division. |
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(2) |
If the parties have not agreed upon a mediator within 14 days of a notice of dispute being delivered as provided for in subsection (1), a party may by written notice to the other party and to the Deputy Minister of Forests request the Deputy Minister of Forests to appoint a mediator. |
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(3) |
Within 14 days of receiving a request under subsection (2) to appoint a mediator, the Deputy Minister of Forests or a person designated by the deputy minister must appoint a registered mediator as mediator. |
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(4) |
If a dispute is not resolved by mediation within 14 days of a mediator being agreed upon by the parties or appointed under subsection (3) or upon earlier written notice by the mediator to the parties that the dispute is not likely to be resolved through mediation, a party may commence arbitration proceedings by delivering a notice of arbitration to the other party. |
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(5) |
A party may request the Deputy Minister of Forests to appoint a sole arbitrator if, within 14 days of a notice of arbitration being delivered under subsection (4), either |
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(a) |
the parties have not agreed upon a sole arbitrator, or |
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(b) |
the parties have agreed that the arbitration be conducted by a 3 person arbitration panel and at least one party has failed to appoint its nominee to the arbitration panel. |
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(6) |
If the nominees of each party to a 3 person panel have not selected a chairperson of the panel within 28 days of the notice of arbitration being delivered, a party may request the Deputy Minister of Forests to appoint a chairperson. |
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(7) |
Within 14 days of receiving a request under subsection (5) or (6) to appoint a sole arbitrator or chairperson, the Deputy Minister of Forests or a person designated by the deputy minister must appoint a registered arbitrator as sole arbitrator or chairperson. |
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(8) |
Mediation proceedings commenced under this Division must be administered by the mediator and conducted in a manner considered appropriate by the mediator in the circumstances. |
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(9) |
Any recommendation made by a mediator is not binding on the parties. |
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(10) |
In any subsequent arbitration or other legal proceeding, with respect to an issue in dispute in the mediation, |
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(a) |
no party may call the mediator as a witness, |
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(b) |
no party may introduce evidence regarding |
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(i) |
any discussions that took place as part of the mediation between the parties, or between one or more parties and the mediator, |
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(ii) |
any recommendation for settling the dispute made by the mediator or any party as part of the mediation, |
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(iii) |
any document prepared as part of the mediation by the mediator or any party to the mediation, and |
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(c) |
no document that is privileged ceases to be privileged solely as a result of being disclosed to the mediator or to another party during the mediation. |
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(11) |
One or more of the provisions of subsection (10) may be waived any time after the mediation by agreement of all the parties to the mediation. |
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(12) |
Arbitration proceedings commenced under this Division must |
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(a) |
be administered by the arbitrator or a clerk appointed by the arbitrator, unless the parties to the arbitration otherwise agree, and |
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(b) |
except where inconsistent with requirements of this Part, including any rules established by an arbitrator under section 6, be conducted in accordance with the rules of the British Columbia International Commercial Arbitration Centre for the conduct of domestic commercial arbitration, unless the parties to the arbitration agree otherwise. |
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(13) |
A notice referred to in this section must |
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(a) |
provide a brief description of the nature of the dispute, and |
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(b) |
be delivered |
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(i) |
in accordance with any provision for notice in the contract or subcontract under or in relation to which the dispute arises, or |
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(ii) |
in the absence of a provision referred to in subparagraph (i), by serving the notice in accordance with the Supreme Court Rules. |
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(14) |
A person who has acted as a mediator in a dispute may only act as an arbitrator in subsequent arbitration proceedings with respect to that dispute if, after the conclusion of the mediation, all parties agree. |
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Fees and expenses of mediation shared |
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9 |
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The fees and expenses of the mediator in a mediation, or of a clerk, secretary or reporter assisting in a mediation, must be shared equally between the parties to the dispute, whether or not the mediation leads, without arbitration, to a settlement of the dispute, unless |
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(a) |
a party fails or refuses to meet with the mediator or participate in the mediation, in which case the expenses must be borne entirely by that party, or |
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(b) |
the mediator assesses costs against a party for cause. |
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Parties bear own costs of mediation |
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10 |
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Unless the parties otherwise agree, each party to the mediation must bear that party's own costs of the mediation, apart from the fees and expenses referred to in section 9. |
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| Division 3 - Register of Arbitration Awards |
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Register of arbitration awards |
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11 |
(1) |
With respect to a dispute arising under or in connection with a contract or subcontract, within 14 days of an arbitrator making an award or giving reasons for an award the sole arbitrator or the chairperson of the arbitration panel must deliver a copy of the award or reasons for the award to the Deputy Minister of Forests. |
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(2) |
The Deputy Minister of Forests or person designated by the deputy minister must keep a register to be called the Register of Timber Harvesting Contract and Subcontract Arbitration Awards. |
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(3) |
The Deputy Minister of Forests or person designated by the deputy minister must place in the Register of Timber Harvesting Contract and Subcontract Arbitration Awards every copy of an arbitration award or reasons for an arbitration award received under subsection (1). |
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(4) |
A copy of the Register of Timber Harvesting Contract and Subcontract Arbitration Awards must be kept at each regional office of the ministry and be made available for public review. |
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