FEMA Arbitrations under 42 U.S.C. §5189a(d)

Rule 601: Scope

Rule 602: Authority

Rule 603: Purpose

Rule 604: Arbitration request

Rule 605: Parties; representation; email service

Rule 606: Arbitrators; panels; costs

Rule 607: Initial conference

Rule 608: Evidence; timing

Rule 609: Other materials considered; ex parte communications

Rule 610: Motions

Rule 611: Hearing; live or paper

Rule 612: Streamlined procedures

Rule 613: Decision; finality

FEMA Arbitrations under 42 U.S.C. §5189a(d)

Rule 601: Scope

The rules in this part establish procedures for arbitration by the Board at the request of an applicant for public assistance from the Federal Emergency Management Agency (FEMA) for a disaster that occurred after January 1, 2016.

Rule 602: Authority

The Board is authorized by section 423 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act), 42 U.S.C. §5189a(d), to arbitrate disputes between applicants and FEMA as to eligibility for public assistance (or repayment of past public assistance) for a disaster post-dating January 1, 2016, when the disputed amount exceeds $500,000 or, for an applicant in a rural area, is at least $100,000.

Rule 603: Purpose

Under the Stafford Act, the Board acts for the United States Government to resolve public assistance eligibility and repayment disputes by arbitration, a speedy and flexible method of impartial dispute resolution. Eligibility and repayment disputes come to the Board prior to final agency action by FEMA. An arbitration decision under these rules is the final action by the Executive Branch in a dispute. These rules facilitate the creation of an arbitration record sufficient to allow the Board to issue a prompt, just, and reasoned decision.

Rule 604: Arbitration request

  1. An applicant for public assistance may request arbitration by following applicable FEMA guidance implementing section 423 of the Stafford Act.
  2. Applicants shall efile arbitration requests with the Board as prescribed by Board Rule 1. Voluminous attachments may be filed separately in electronic media as if under Board Rule 4(b)(1) and (3). The Clerk of the Board will acknowledge an arbitration request by emailing the parties a docketing notice.

Rule 605: Parties; representation; email service

The parties to an arbitration are the applicant, the grantee (if not the applicant), and FEMA. Each party shall have one primary representative. This person need not be an attorney but must be authorized by law, formal delegation, or permission of the arbitrators to speak and act for the party in the arbitration. Unless otherwise advised, the Board deems the person who signed the arbitration request to be the applicant’s primary representative. Any other primary representative or other party representative shall promptly efile a notice of appearance complying with Board Rule 5(b). Unless otherwise directed by the panel, a party shall email its efilings to every other party’s primary representative at the time of filing.

Rule 606: Arbitrators; panels; costs

The Board assigns three judges as the panel of arbitrators for each request. A single arbitrator may act on behalf of a panel under Rules 607 and 611. A full panel issues any decision under Rule 613. The Board arbitrates at no cost to the parties, who bear their own costs of participation.

Rule 607: Initial conference

The panel will hold a telephonic scheduling conference with all parties as soon as practicable, ordinarily within 14 calendar days after the Clerk dockets an arbitration request. Each primary party representative shall participate in the conference. At least one panel member will preside. The panel will promptly issue to the parties a written summary of the conference and the schedule. A party has 5 calendar days from receipt of the panel’s conference summary to efile any objection to it. The panel may hold and summarize other conferences as necessary.

Rule 608: Evidence; timing

No party is required to provide additional evidence. An applicant or grantee may, but need not, supplement materials it previously provided to FEMA regarding the dispute. A party may elect to present additional evidence, i.e., documents, things, or testimony tending to make a factual contention appear more or less likely to be true. If a party so elects, the panel will to the extent practicable allow a response. FEMA shall efile its response to an arbitration request within 30 calendar days after receiving the docketing notice. A panel may not exclude as untimely evidence proffered before arbitration closes under Rule 613. A panel may consider the timing or surprise nature of evidence when assessing the significance, credibility, or probative value of the evidence.

Rule 609: Other materials considered; ex parte communications

Written or oral arguments or statements of experts as to how a panel should understand evidence or apply the law are not evidence but may be presented as scheduled by the panel and may be subject to page, word, or time limits. By the close of arbitration under Rule 613, parties should provide the panel with everything it needs to make a decision. Documents written by a party for the panel during arbitration shall comply with Board Rules 1(b) (“Efiles; efiling”), 7, and 23. No member of a panel or of the Board’s staff will communicate with a party about any material issue in arbitration outside of the presence of the other party or parties, and no one shall attempt such communications on behalf of a party.

Rule 610: Motions

Motions are strictly limited and should ordinarily be made orally during the initial conference under Rule 607. A later motion may be efiled. A party may make a procedural motion, such as to extend time. An applicant may move for voluntary dismissal. No party may move for a prehearing merits decision (e.g., summary judgment or dismissal for failure to state a claim) or for involuntary prehearing dismissal other than on the merits except on the grounds that an arbitration request is untimely. A panel ordinarily issues one decision per arbitration.

Rule 611: Hearing; live or paper

Parties may conclude arbitration by presenting their positions in a hearing. A hearing may be live or, if agreed by all parties, on a written record (a “paper hearing”) or a combination of the two. The panel will begin a hearing within 60 calendar days after the initial conference under Rule 607 unless the Board Chair approves a later date. All panel members will attend a live hearing in Washington, D.C. A single panel member may conduct a live hearing elsewhere. Hearing procedures are at the panel’s discretion, with the goal of promptly, justly, and finally resolving the dispute, and need not involve traditional witness examination or cross-examination. Parties should not offer fact witnesses to read legal materials or to make legal arguments. Statements of fact in a hearing need not be sworn but are made subject to penalty for violation of 18 U.S.C. 1001. Live hearings are not public and may not be recorded by any means without the Board’s permission. The Board may have a live hearing transcribed for the panel’s use. If a transcript is made, a party may purchase a copy and has 7 calendar days after a copy is available to efile proposed corrections.

Rule 612: Streamlined procedures

The Board encourages parties to focus on providing only the information a panel needs to resolve an eligibility or repayment dispute. Examples of streamlining may include without limitation—

  1. Electing not to supplement the materials already provided to FEMA, if (or to the extent) the existing record adequately frames the dispute;
  2. Relying when possible on documents over other types of evidence;
  3. Simplifying live hearings by efiling in advance written testimony, reports, or opening statements by some witnesses or party representatives;
  4. Refraining from objecting to evidence without good cause; and
  5. Omitting duplicative and immaterial evidence and arguments.

Rule 613: Decision; finality

The panel will advise the parties when the arbitration is closed. The panel will resolve a dispute within 60 calendar days thereafter unless the panel advises the parties that the Board Chair approves a later date. The panel’s decision may be issued in writing or orally with transcription. A decision is primarily for the parties, is not precedential, and should concisely resolve the dispute. The decision of a panel majority is the final administrative action on the arbitrated dispute and is judicially reviewable only to the limited extent provided by the Federal Arbitration Act (9 U.S.C. 10). Within 30 calendar days after issuing a decision, a panel may correct clerical, typographical, technical, or arithmetic errors. A panel may not reconsider the merits of its decision resolving an eligibility or repayment dispute.