Wallace and Donnetta Duncan, et al. - Page 3

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                                     Background                                       
               On April 14, 2003, the parties filed a Joint Motion for Rule           
          124 Arbitration, moving that certain factual issues common to               
          these consolidated cases be submitted for voluntary binding                 
          arbitration.  Attached as an exhibit to the joint motion was the            
          parties’ arbitration agreement, executed by the parties’                    
          representatives.  On April 18, 2003, this Court granted the joint           
          motion.                                                                     
               In the arbitration agreement (reproduced in the appendix               
          hereto) the parties agreed, as relevant herein, to place “no                
          limitations on the materials or sources used by the Arbitrator”.            
          The arbitration agreement states:                                           
               Given the Arbitrator’s unique knowledge of the facts                   
               * * *, coupled with both parties’ confidence in the                    
               Arbitrator’s good faith and neutrality in this                         
               arbitration, the parties agree that there is no need                   
               for either party to submit testimony, expert reports,                  
               written summaries or affidavits supporting their                       
               respective positions to the Arbitrator.  * * *                         
                    The parties agree that the Arbitrator may request                 
               that the parties clarify the Issues or request any                     
               additional information that the Arbitrator deems                       
               necessary, during any phase of the arbitration process                 
               provided all parties are notified of such requests and                 
               are given the opportunity to participate in any                        
               discussions.  * * * [Emphasis added.]                                  
               Pursuant to the arbitration agreement, the arbitration                 
          schedule began with a 30-day discovery period, during which                 
          petitioners were required to provide previously requested                   
          information to the arbitrator, and each party was to provide “any           






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