# COMAR Title 02 — Office of the Attorney General ## Subtitle 01 — Consumer Protection Division ### Chapter 06 — Arbitration Procedure **Authority:** Commercial Law Article, §§13-205 and 13-404;Courts and Judicial Proceedings Article, §3-201 et seq.; Annotated Code of Maryland **Administrative History:** Effective date: June 25, 1977 (4:13 Md. R. 1027) **Administrative History:** Regulation .07 amended effective April 21, 1978 (5:8 Md. R. 589) **Administrative History:** Regulations .01—.10 repealed effective July 15, 1985 (12:14 Md. R. 1429) **Administrative History:** Regulations .01—.11 adopted effective July 15, 1985 (12:14 Md. R. 1429) **Administrative History:** Chapter revised effective February 27, 2006 (33:4 Md. R. 351) **Administrative History:** Regulation .01B amended effective April 27, 2026 (52:8 Md. R. 355) **Administrative History:** Regulation .05C, D amended effective April 27, 2026 (52:8 Md. R. 355) **Administrative History:** Regulation .06 amended effective April 27, 2026 (52:8 Md. R. 355) **Administrative History:** Regulation .07F amended effective April 27, 2026 (52:8 Md. R. 355) **Administrative History:** Regulation .08A amended effective April 27, 2026 (52:8 Md. R. 355) **Administrative History:** Regulation .09B amended effective April 27, 2026 (52:8 Md. R. 355) **Administrative History:** Regulation .10 amended effective April 27, 2026 (52:8 Md. R. 355) #### Regulation .01 Scope of the Arbitration Program. *COMAR 02.01.06.01* A. General. Arbitration is a process by which disputes between parties are resolved outside of the court system by an impartial individual after hearing pertinent evidence and argument. Arbitration in Maryland is governed by the Maryland Uniform Arbitration Act, Courts and Judicial Proceedings Article, Title 3, Subtitle 2, Annotated Code of Maryland. B. Disputes Subject to Arbitration. Disputes arising out of transactions involving consumer goods, services, credit, or realty and which are covered by the Consumer Protection Act, Commercial Law Article, Title 13, Annotated Code of Maryland, may be arbitrated under these regulations when the consumer-complainant and the business agree to binding arbitration conducted under the arbitration program of the Consumer Protection Division. Unless the agreement to arbitrate stipulates otherwise, the arbitrator may award specific performance and damages, including consequential or incidental damages. Claims for punitive damages and attorney’s fees may not be arbitrated under any circumstances. #### Regulation .02 Cost. *COMAR 02.01.06.02* There will be no cost to either party for an arbitration conducted under these regulations except for transcripts ordered by a party. #### Regulation .03 Pool of Volunteer Arbitrators. *COMAR 02.01.06.03* A. Maintenance of Pool. The Arbitration Administrator may maintain a pool of volunteer arbitrators who will be selected to hear arbitrations that are not conducted by the Chief Arbitrator. A pool shall represent, to the extent feasible, a broad cross section of individuals from all parts of the State. The Arbitration Administrator will endeavor to obtain participation of a sufficient number of arbitrators from each region of the State to assure that arbitrations from that region will be heard and decided promptly. B. Qualifications of Arbitrators. (1) Individuals selected for the pool will be persons at least 21 years old who: (a) Have reputations for honesty, fairness, and diligence; (b) Have the ability to analyze the facts and law, and resolve disputes in an impartial, just, and common sense manner; (c) Are able to write clearly and demonstrate the reasoning followed in reaching the decision; (d) Demonstrate maturity and judgment; and (e) Are willing to commit the time that will be needed to assure that arbitrations assigned to them may be scheduled and decided promptly. (2) Volunteer arbitrators may be, but are not required to be, lawyers. C. Training. Volunteer arbitrators will be required to participate in one or more training programs, including training in: (1) How to conduct a hearing; (2) Applicable laws; and (3) Writing of an arbitration decision. #### Regulation .04 Participation in Arbitration Program. *COMAR 02.01.06.04* A. Precommitment Agreements. A person who conducts business in the State may agree, on a form prescribed by the Division, to submit to arbitration all, or any class of, disputes that may arise in the future between that merchant and a consumer so long as the dispute is one otherwise covered by these regulations. The agreement will provide that it will bind the business to submit to arbitration any complaint for which mediation efforts by the Division have not been fully successful, so long as the consumer also agrees to participate in the arbitration. An agreement under this section may be terminated with notice. B. Agreements to Arbitrate. Either party to a dispute covered by these regulations that is the subject of a complaint filed with the Consumer Protection Division may request arbitration, or arbitration may be suggested by the Consumer Protection Division, whether the business has agreed in advance to submit disputes to arbitration. When arbitration is requested by a party or suggested by the Consumer Protection Division, the Division will provide to each party an agreement to arbitrate on a form prescribed by the Division. The Division will note on the form the names of the parties, the issues on which arbitration is sought, the amount of the consumer's claim, and the remedy requested. Arbitration may be agreed to only by signing the arbitration agreement, which will provide that the arbitration will be governed by these regulations, that the decision will be binding except for limited appeals allowed by the Maryland Uniform Arbitration Act, and that the decision may be enforced by the Division. The Division will notify the parties whether arbitration has been agreed to or rejected. #### Regulation .05 Appointment of Arbitrator. *COMAR 02.01.06.05* A. Persons Eligible. The Chief Arbitrator may appoint himself/herself to preside over arbitration or may appoint an arbitrator from any pool maintained by the Arbitration Administrator. In making the appointment, the Chief Arbitrator will consider the: (1) Location of the arbitration; and (2) Ability of any potential arbitrator to hear and decide the particular matter fairly and promptly. B. Disqualification. (1) An arbitrator may not hear an arbitration if: (a) He/she is related to one of the parties, has a personal interest in the subject of the arbitration, has a present or former personal or business relationship with one of the parties; or (b) Other circumstances exist that might affect the arbitrator's ability to render a fair decision. (2) If the Chief Arbitrator is disqualified from hearing a matter, the Arbitration Administrator shall appoint the arbitrator. C. Notification. The Arbitration Administrator shall send written notice to the arbitrator of the appointment and the time, date, and location of the arbitration. The arbitrator shall promptly advise the Arbitration Administrator of any conflict or other interest in the matter that would preclude the arbitrator from serving, or of his/her unavailability to hear and decide the arbitration promptly. In this event, the Arbitration Administrator will make another appointment. D. Request for Disqualification. Any party may seek the disqualification of an arbitrator based upon the standards set forth in §B(1) of this regulation. The Chief Arbitrator may decide whether to grant the request or refer the request to the Chief of the Consumer Protection Division for decision. Any other arbitrator may refer the request to the Chief Arbitrator or, if the Chief Arbitrator has been disqualified previously, to the Chief of the Division. If an arbitrator, the Chief Arbitrator, or the Chief of the Division grants a request for disqualification, the Arbitration Administrator shall appoint another arbitrator to hear the matter. E. Substitution of Arbitrator. If an arbitrator is unable to conduct a prompt arbitration hearing or render a prompt decision in an arbitration already conducted due to illness, death, disability, or other reasons, the Arbitration Administrator may, after consultation with the parties, appoint another arbitrator. #### Regulation .06 Scheduling of Arbitration Hearing. *COMAR 02.01.06.06* A. Location and Time. Arbitrations shall be set by the Arbitration Administrator, to the extent feasible, at a time and location convenient to all parties. Arbitrations may be conducted at the complainant's home or the merchant's place of business, or any other location that will encourage a prompt and fair evaluation of the dispute. With the written agreement of the parties, the hearing may be conducted via electronic means. If either party desires a specific location for the hearing, that request shall be made in the agreement to arbitrate. B. Notice. After the parties agree to arbitrate the dispute, the Arbitration Administrator will schedule promptly a mutually convenient hearing date and mail notice of the date, time and place of the scheduled hearing at least 10 calendar days before the hearing to all parties by certified mail, return receipt requested, except that, with the written consent of the parties to the arbitration, the notice may be sent by email to an email address provided by the party to the Arbitration Administrator. The notice of the hearing will include the name of the arbitrator selected by the Chief Arbitrator to hear the dispute. C. Postponement. Any request for postponement may be granted by the arbitrator if all parties consent, or if good cause for a postponement is shown to the satisfaction of the Arbitration Administrator. Requests for postponement for cause should be made to the Arbitration Administrator at least 5 days before the hearing, unless the circumstances requiring the postponement do not allow 5 days' notice. Whenever a postponement is granted, the Arbitration Administrator will promptly reschedule the hearing and notify the arbitrator and the parties. #### Regulation .07 Conduct of the Arbitration Hearing. *COMAR 02.01.06.07* A. Representation. Parties to an arbitration may present their own cases or have someone represent them. Representation by an attorney is permitted but is not required. B. Presence at the Arbitration. Only the parties, witnesses, counsel, and other representatives may be present at an arbitration hearing unless the parties agree that other persons may attend. Witnesses, other than the parties and their representatives, may, at the discretion of the arbitrator, be excluded from the hearing during the testimony of any other witnesses. C. Failure to Appear. If a party, after proper notification, fails to appear at the hearing, the arbitrator shall hear the evidence presented and render a decision not earlier than 5 days following the hearing unless, within that time, the party who failed to appear establishes good cause for failing to appear, and failing to timely request a postponement. If good cause is established, the arbitrator shall reopen the hearing and take all additional evidence as is offered before rendering a decision. D. Allowable Evidence. The parties have the right to testify, present other witnesses, including experts, who have knowledge relevant to the dispute, and present relevant documents for the arbitrator's consideration. Each party may question the other party's witnesses. All witnesses will be placed under oath. Strict rules of evidence, such as apply in court proceedings, may not be applied, and the arbitrator will determine the weight to be given to any evidence that is presented. E. Inspections. The arbitrator has the discretion to make an inspection of the merchandise or goods which are the subject of the dispute, but are not available at the hearing, when requested by a party or whenever he/she determines that an inspection is necessary. If the arbitrator determines that an inspection of the goods or merchandise is necessary, then the arbitrator will promptly notify all parties to the dispute of the time and place of the inspection so that all parties to the dispute may be present if they wish. F. Expert Consultants. If the arbitrator determines that consultation with a neutral expert would assist him/her in reaching a fair decision, the arbitrator may request the Arbitration Administrator to obtain the services of an individual with the appropriate experience. The Arbitration Administrator may maintain a list of persons who have specialized skills covering a wide variety of consumer transactions, and who agree to provide expert assistance to the arbitration program when requested, so that requests for expert consultations may be honored with minimum delay. Consultation of an expert shall take place either in the presence of the parties and arbitrator or through the use of a conference call or electronic meeting arranged by the arbitrator. The arbitrator shall adjourn and reconvene the hearing if the adjournment is necessary for consultation of the expert. G. Adjournments and Reopenings. The arbitrator may adjourn an arbitration hearing from time to time as necessary. Notice of the adjournment shall be sent to the Arbitration Administrator who will schedule the adjourned hearing as appropriate. If the arbitrator determines after the close of the hearing, but before an award is made, that further hearing is needed to permit a just decision, the arbitrator may reopen the hearing by giving the parties reasonable notice of the reopening, including the matter or matters to be heard at the reopened hearing. The Arbitration Administrator shall schedule reopened hearings. #### Regulation .08 Ex Parte Communications. *COMAR 02.01.06.08* A. There shall be no direct communication between the parties to an arbitration and the arbitrator concerning the merits of the dispute other than at the arbitration hearing. Other communications, such as those concerning scheduling or other procedural matters, shall be made to the Arbitration Administrator, who will respond or refer the matter to the arbitrator as appropriate. B. If an ex parte communication occurs between a party and the arbitrator, the arbitrator shall notify the other party of the date, time, place, and content of the communication. If the communication occurs after the arbitration hearing and before rendering of the decision, the arbitrator shall reconvene the hearing, at the request of the party who did not engage in the ex parte communication, to permit submission of further evidence and rebuttal by both parties. #### Regulation .09 Transcript of Hearing. *COMAR 02.01.06.09* A. Record. Unless requested by a party, a verbatim record may not be made of the arbitration hearing, although the arbitrator will take notes of the testimony and place documentary evidence in an arbitration file. B. Transcription. A party may request in writing to the Arbitration Administrator that a verbatim record of all or part of the hearing be made and transcribed. This request shall be submitted with the agreement to arbitrate, and shall include an agreement to pay all costs of transcription. The Arbitration Administrator may require these costs to be advanced by the requesting party. Upon this request, the Arbitration Administrator will arrange for a reporter to be present or for the recording of the hearing. Once prepared, the transcript will be made available to all parties on request, and a copy will be preserved by the Arbitration Administrator. #### Regulation .10 The Arbitration Award. *COMAR 02.01.06.10* A. Discretion of Arbitrator. The award in an arbitration rests solely in the discretion of the arbitrator and may not be changed by any person within the Office of the Attorney General except for a modification by the arbitrator when allowed by the Maryland Uniform Arbitration Act. B. Time. The award shall be made promptly. Arbitrators will endeavor to make an award within 30 days of the hearing unless unusual circumstances prevent an award being made within the 30-day period. C. Form of Award. The award shall be in writing. It shall include: (1) The arbitrator's signature; (2) The date of the award; (3) The specific relief awarded to the complainant, or a statement that no relief is awarded; and (4) A statement of reasons for the award. D. Attorney’s Fees. An award may not include attorney’s fees. E. Notice. The arbitrator shall promptly submit the arbitration decision to the Arbitration Administrator. The Arbitration Administrator shall promptly deliver to the parties, by certified mail, return receipt requested, a copy of the award, along with an explanation of the parties' rights to appeal under the Maryland Uniform Arbitration Act. F. Settlement. If the parties settle the dispute before the award, the arbitrator shall set forth the terms of the settlement in an award, which shall have the same effect as any other award. G. Enforcement. If there has not been compliance with an award and no timely appeal has been taken, the Consumer Protection Division may seek confirmation of the decision in the appropriate court. #### Regulation .11 Interpretation of Regulations. *COMAR 02.01.06.11* These regulations are to be interpreted broadly to accomplish their purpose, and to promote the rendering of just, impartial, and timely arbitration decisions.