How does a Multi-Party FOA work?

While the recently introduced multi-party FOA generally follows the similar procedural time-table, there are certain important differences:

Mandatory mediation prerequisite
The Agency may not refer a matter submitted to FOA by a group of shippers to an arbitrator unless the shippers demonstrate that an attempt has been made to mediate the matter. This requirement adds a preliminary procedural step, for which a minimum of 30 days should be allowed.

Objections by the carrier
In multi-party FOAs, the carrier must file ant preliminary objections within seven days of the shipper's joint submission. If no objection is filed within this time, the matter is deemed to be eligible for the multi-party process.

Carrier objections are likely to focus on this eligibility. This may include legal arguments and evidence on whether the matter is "common to all the shippers" and whether the terms of the joint offer "apply to all of them". As shippers begin to use the multi-party FOA remedy, the Agency will be called upon to define the meaning of these terms.

The shippers must file a joint answer to the carrier's objection within five days, and the carrier is given two days to file a written reply to that answer. The Agency is required to rule on the preliminary objection no later than the date on which it is required to refer the matter to the arbitrator.

Extended time-frames
The CTA extends certain deadlines to accommodate the participation of additional parties and the fact that shippers will be required to act jointly throughout the process. Specifically:

• the time for filing final offers including dollar amounts (Step 5 in the Summary above) is extended from ten days to 20 days;
• the time within which the arbitrator must render a decision (Step 12) is extended from 60 days to 120 days;
• the arbitrator is given the power to extend the deadlines for any of the intervening steps, if considered necessary.