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NYSE Releases Statistics

Expanding the mediation program to disputes involving claims of $250,000 or more from a threshold of $500,000 has almost doubled the number of qualifying industry claims and multiplied qualifying customer claims from 37 in 2000 to 194 in 2001.

The program applies to all cases that exceed the $250,000 mark, but, as NYSE DOA Robert S. Clemente is fond of saying, the only thing “mandatory” about the mediation pilot is that the staff must attempt to get the parties to try it.

During 1998-2000, when the $500,000 threshold applied, 58 mediations were held in industry cases with settlement percentages that reached 41% in 1999 and dipped to 26% in 2000. Customer cases were mediated in 24 instances and settle in all but one matter. There were 28 mediations held at the request of parties in non-qualifying cases and these settled in 21 instances (75%).

In 2001, 25 of the 105 industry cases that qualified chose mediation and 10 settled (40%). Customers mediated in 32 instances and the parties achieved settlement in 22 matters (69%). Voluntary requests for mediation from non-qualifying arbitrations numbered 17 and 11 settled (65%). Two “direct-in” mediations were held in 2001 with parties who filed for mediation before filing an arbitration and both matters settled.

Thus, 55 of the 76 mediations held were settled, an average success rate of 72%. Excluding mediated settlements, 263 cases settled or were otherwise resolved in 2001 and 146 were decided by arbitrators, signifying that settlements, ex-mediation, occurred in no more than 64% of the closed cases.


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