ruleovrv.htm

2. Aim of the RIDR Rules

The aim of the RIDR Rules is to resolve disputes within the railway industry in a manner which satisfies those involved as to its fairness, while keeping costs to a minimum and avoiding unnecessary delay.

While all the mechanisms provided for in the Rules will be quicker and cheaper than litigation through the courts, they offer differing advantages. Parties to a dispute which is heard by the Committee effectively have to pay nothing for the services of the Committee and its staff, and know that their case will be considered judicially by experienced and respected railway professionals. A Committee hearing is in essence a negotiation between the parties facilitated by the Committee; if the parties are unable to reach agreement, the Committee Chairman will normally give a written ruling which will be based on his understanding of the law. Mediation presupposes that the parties want to reach a resolution, but need help in doing so fairly. Expert determination provides for one individual accepted by the parties to a dispute to reach a decision taking account both of his own knowledge and of arguments put forward by the parties, while arbitration is a judicial process where the award is final and binding except in very rare circumstances, and can be registered as a judgement on application to the court and enforced in the same way. Mediators, independent experts and arbitrators normally charge fees based on an hourly or per diem rate; if the proceedings take place in the Committee’s offices, the latter will normally be provided free of charge.

3. The RIDR Council

3.1 The RIDR Rules provide for the election of two bodies - the RIDR Council for ‘parliamentary’ issues, and the RIDR Committee for ‘judicial’ matters.

The RIDR Council exercises five responsibilities -

· appointment or dismissal of the Chairman of the RIDR Committee, and of any Vice-Chairman;

· appointment or dismissal of the RIDR Disputes Secretary, who may be the same person as the Committee Secretary; this appointment, as it deals with arbitration in which they may be involved, is subject to the approval of the Regulator and the Strategic Rail Authority;

· overseeing the proper discharge of the RIDR Rules;

· changing the RIDR Rules;

· endorsing requests from non-licensed companies (other than Infrastructure Maintenance Contractors) who wish to become Industry Parties.

It should therefore need to meet only infrequently.

3.2 The RIDR Council comprises eleven members, one of whom will be appointed Chairman.

The eleven members comprise the seven members of the Class Representatives’ Committee, namely those representing -

· Network Rail	2
· Franchise Passenger Train Operators	3
· Non-franchise Passenger Train Operators	1
· Non-passenger Operators	2
plus three specifically elected members, representing -
· Infrastructure (Maintenance) Contractors*	2
· Other Industry Parties	1

Each RIDR Council member may appoint an alternate.

3.3 The quorum for a meeting is eight Council members; subject to unanimous agreement, decisions may be taken by postal vote without the need for a meeting. Decisions require at least eight votes.

3.4 Any Industry Party may require a meeting of the RIDR Council to be held within 28 days.

*: The Rules will be amended in due course to delete the word “Maintenance” to recognise changes to the infrastructure maintenance regime.

4. The RIDR Committee

4.1 The RIDR Committee determines on disputes placed before it and undertakes other tasks mandated to it, such as the biennial review of the operation of the Claims Allocation and Handling Agreement (CAHA).

4.2 The RIDR Committee comprises five members, with an independent Chairman and a Committee Secretary. Each of the five members appoints an alternate member.

The five members comprise -

· 1 nominated by Network Rail

· 1 elected by Franchised Passenger Train Operators;

· 1 elected by Non-franchised Passenger Train Operators;

· 1 elected by Non-passenger Train Operators;

· 1 elected by Infrastructure (Maintenance) Contractors*.

Members serve for up to a fixed two year period, and may be re-elected.

4.3 The Committee Secretary is appointed by the Committee Chairman, and may be the same person as the RIDR Disputes Secretary.

*: The Rules will be amended in due course to delete the word “Maintenance” to recognise changes to the infrastructure maintenance regime.

5. Funding

The RIDR Council and Committee are funded by Industry Parties. Those who have been licensed by the Regulator contribute pro rata to their licence fees, while Infrastructure Maintenance Contractors and those who are unlicensed contribute an annual amount which the Committee decides to be ‘fair and reasonable’.

6. Mixed Disputes

Mixed access and non-access disputes are directed to the RIDR Committee, who may refer those dealing substantially with access issues to the Access Dispute Resolution Committee.

7. RIDR Committee Hearing

7.1 A separate document - “Procedural Rules for the Resolution of Disputes by the Committee” - sets out the full process for a Committee hearing.

7.2 Any Industry Party referring a dispute to the Committee should discuss the process with the Committee Secretary and then serve a written notice of reference on the Committee Secretary and on every other party to the dispute.

Parties to a dispute will normally submit a joint Statement of Agreed and Disputed Facts and separate submissions detailing their position and arguments, backed by copies of documents agreed to be relevant. The dispute hearing will be based on this documentation, the time for oral representations being limited.

The RIDR Rules set out a timescale for various actions, but in practice this will depend on the complexity of the issues in dispute, the number of parties to the dispute, the need for expert advice and the ability to diary an agreed date for the hearing.

7.3 Each party to a dispute may be represented by one officer or employee or, with the Chairman’s agreement, by an adviser. This representative may be accompanied by his insurer’s representative and/or by technical experts and/or, with the Chairman’s agreement, by a person who is legally qualified, none of whom may address the Committee without the Chairman’s permission.

A representative of the Registrar, responsible for discharging certain duties under CAHA, may attend that part of the meeting where the allocation of third party liability is considered.

7.4 The Chairman may appoint an independent technical or legal adviser, provided that parties to the dispute agree to meet the cost, if appropriate placing a limit thereon.

7.5 The Committee members, plus one representative of each of the parties to the dispute, will seek to reach a decision on the dispute or any part of it that is either unanimous, or with no dissenting votes.

If such an outcome is not possible the Chairman may -

· make a ruling on the dispute or any part of it that has not been agreed, which will be based on his understanding of the law;

· on one occasion, adjourn the hearing to enable parties to the dispute to provide further information; or

· declare the dispute not to be resolved, in which case the parties to the dispute may agree to refer it to mediation, take it to arbitration, or seek to resolve it in some other way.

The Committee, or its Chairman, in ruling on the dispute may make orders requiring one party to make a payment to another, with or without damages and/or interest, or requiring one party to take, or refrain from taking, specified action within a certain time.

7.6 The Committee’s decision is binding on the parties; the Chairman’s ruling is binding unless one or more of the parties gives notice of appeal against it within 28 days. However a party unsuccessfully appealing against the Chairman’s ruling (by going to arbitration) may have to pay the costs of such arbitration; if the appeal is in respect of a dispute involving less than £7,500, and not having a substantial effect on its business, the party is likely to have to pay the costs of arbitration whether it wins or loses.

7.7 The parties to a dispute will not pay the attributable costs of the Committee or of any other party to the dispute unless -

· the case of that party was so lacking in merit that the matter should not have been referred to the Committee, or

· the conduct of that party before or during the hearing was such as to justify its having to pay the costs.

8. Mediation

8.1 Mediation is a private dispute resolution process where a neutral facilitator helps the parties involved to reach an agreed settlement. Mediation presupposes that the parties genuinely want to reach agreement but have been unable to agree on a fair way of doing so.

8.2 The RIDR Disputes Secretary will agree with the parties involved an acceptable mediator; in the absence of such agreement within 21 days he will select one from the register of mediators he maintains.

The mediator may require a summary of the dispute and their contentions relating thereto from each party. Two representatives of each party, one of whom must have decision-making authority, will meet the mediator, separately if he sees fit.

8.3 The mediator will encourage agreement by discussion, and may contribute his own views. The parties may meet more than once but, other than by agreement, only within 35 days of the mediator’s appointment.

If the parties have not agreed within seven days of the final meeting the mediator may advise them of his views on a fair settlement, or on the likely outcome if the dispute were to be referred to arbitration. Parties are not bound to accept this advice.

All proceedings and documents are confidential and without prejudice.

9. Arbitration

9.1 Arbitration is the process closest to court proceedings and the only method of Alternative Dispute Resolution which can result in an award being registered as a judgement, and enforced as such, on application to the High Court. Arbitrations are conducted in accordance with statute law, principally the Arbitration Act 1996.

9.2 The RIDR Disputes Secretary will agree with the parties involved an acceptable arbitrator; in the absence of such agreement within 21 days, he will select one from the register of arbitrators he maintains.

The arbitration procedure will be laid down by the arbitrator following the views of the parties but, unless he orders otherwise, for example in the case of a complex dispute, an agreed timetable will apply aimed at an award within fourteen weeks of the arbitrator’s appointment.

9.3 At the arbitration hearing parties may be legally represented and witnesses cross-examined under oath. There will be no opening oral submissions, but either written closing submissions or oral closing submissions of up to 20 minutes each.

9.4 The arbitration award is final and binding; it may include an order requiring one party to make a payment to another, with or without damages and/or interest, or requiring one party to take, or refrain from taking, specified action within a certain time.

The arbitrator may order any party to pay all or part of the costs of any other party or of the arbitration. Where an applicant challenges a determination of the RIDR Committee Chairman and the arbitrator reaches a decision no more favourable to the applicant or, if the appeal is in respect of a dispute involving less the £7,500 and not having a substantial effect on its business, he may require the applicant to pay all the other party’s costs.

9.5 The only appeal against an arbitration award is on a point of law, and only if the court gives leave; the award can be registered as a judgement on application to the court, and enforced in the same way as a judgement.

10. Expert Determination

10.1 Expert determination is a process whereby the parties agree to be bound by the decision of an independent third party who has expert knowledge of the subject matter of the dispute. The independent expert will take account of evidence and arguments put forward by the parties, but may also rely on his own existing knowledge and expertise to come to a decision.

10.2 Any dispute which the parties have agreed should be settled by expert determination will be determined by an independent expert agreed between the parties or appointed by the RIDR Disputes Secretary according to the same arrangements as those outlined above for arbitration, except that the timetable is shorter. The determination will normally be binding, but is not enforceable by a court.

11. Case Law and Process Reports

11.1 The intention of the RIDR Rules is that Industry Parties should have access to case law which may help them to resolve a potential dispute themselves without invoking the formal procedure.

11.2 Except in the case of mediation, the outcome of which is confidential between the parties, the Secretary to the RIDR Committee or the RIDR Disputes Secretary as appropriate will circulate to each Industry Party either a copy of the determination, ruling or award, a summary thereof or, if the parties have reached a negotiated settlement, the rationale behind it. The latter documents will be agreed with the parties before circulation. Such a copy, summary or rationale in respect of a dispute to which a licence holder was party will also be sent to the Regulator.

Any party to the dispute in question may apply to the Chairman of the RIDR Committee for confidentiality of such determination, ruling or award on the grounds that publication would affect the interests of that party to an extent that would outweigh those of the railway industry as a whole.

11.3 In order to help Industry Parties in the conduct of any future dispute with which they may become involved, the Secretary to the RIDR Committee or the RIDR Disputes Secretary as appropriate may compile a Process Report for circulation to Industry Parties on the procedural aspects of any dispute, including recommendations on how best to approach any future claim or proceedings. Parties who are the subject of such a Process Report will not normally be named.

12. Further information is shown in the following documents available from the Secretary to the RIDR Committee or on the Committee’s website (www.ridr.co.uk):

· Alternative Dispute Resolution in the Railway Industry (together with a Flow Chart showing how a dispute is dealt with);

· RIDR Rules;

· Procedural Rules for the Resolution of Disputes by the RIDR Committee;

· A Guide to Parties to a Dispute referred to the RIDR Committee;

· A Guide to Parties to a Dispute referred to Mediation under the RIDR Rules;

· RIDR Rules: Expert Determination (an exposition of the Rules governing Expert Determination);

· A Guide to Parties to a Dispute referred to Arbitration under the RIDR Rules;

· A Guide to Parties to a Dispute referred to Expert Determination under the RIDR Rules;

· Procedure for Property Disputes within the Railway Industry;

· A Guide to Parties to a Property Dispute within the Railway Industry;

· A Guide to the Preparation of a Statement of Agreed Facts;

· RIDR Rules: Guidance to Witnesses.

13. John Gott is Secretary to the RIDR Committee and RIDR Disputes Secretary. His address is:

John Gott

Central House
14 Upper Woburn Place
London WC1H 0HY

Phone:	020 755 0602
Fax:	020 755 0603
E-mail:	sec@ridr.co.uk
Website:	www.ridr.co.uk

Any Industry Party or other person is welcome to approach the Committee Secretary to discuss informally the RIDR Rules and their operation.

April 2006