Alternative dispute resolution (ADR) firms in California could be prompted to demonstrate their compliance with ethical guidelines, according to new state legislation put forward this week. Senate Bill 940, proposed by Democratic Senator Tom Umberg from Santa Ana, paves the way for the creation of a voluntary scheme by the state bar. This would allow ADRs to validate their adherence to the ethical stipulations laid out in the California Rules of Court.
Notably, those firms participating in the scheme will need to prove the existence of internal processes. These procedures are for ensuring impartiality between parties, dealing with complaints and providing remedy for potential professional failings. Senator Umberg, the bill’s author, has expressed hope that the proposed certification program will serve as a motivating force for ADR firms to show their practices are in line with legal ethics rules.
The full text of the bill can be gleaned by interested legal professionals from the
California Legislature’s information site. For a detailed analysis of the bill and its potential implications, visit the Recorder’s article on the matter.