Affiliates agree, on an individual basis, to participate in the regional arbitration procedure. Therefore, this procedure does not apply to all DHIA members. In those Affiliates not participating, local due process procedures are in place.

STATEMENT OF PRINCIPLE

DHIA Affiliate and Service Provider competition should be based on product, price and service advantages, and should not expose the Affiliate or the DHIA System to unnecessary risk or exposure to litigation because of ignorance of sound legal policies and procedures.

1. Exposures Covered:

1.1 Disputes between a DHIA Affiliate and an individual member
1.2 Disputes between two or more Affiliates
1.3 Disputes between service providers and DHIA members or DHIA Affiliates
1.4 Disputes between National DHIA and DHIA Affiliates

2. Steps for Affiliate/Member Disputes:

2.1 The DHIA technician and/or the technician’s immediate supervisor should make the
initial attempt to resolve the dispute with the producer

2.2 The DHIA Affiliate manager would attempt to resolve the matter following discussions with the producer and technician. A written statement describing the facts and circumstances of the dispute should be prepared, if possible.

2.3 If either party believes the matter cannot be resolved satisfactorily at the administrative level, either party may request arbitration. Primary characteristics of this process are:

2.3.1Voluntary - (Arbitration would not be required under Quality Certification.
If not used, the Affiliate would handle any legal challenge independently
of the NDHIA System.)

2.3.2Model forms are available to DHIA Affiliates, including:
a. Claim Forms
b. Membership Agreement Clause
c. Sample Bylaws

2.3.3 The nature of the dispute and any actions taken must be documented at this
point.

2.3.4 The arbitration panel would consist of three arbitrators drawn from a pool
consisting of prospective arbitrators nominated by participating Affiliates. The
producer would select one arbitrator, the Affiliate would select one, then the two
arbitrators would select a third from the pool. None of the arbitrators would be a
member of the Affiliate involved.

2.3.5 The DHIA member must agree to binding arbitration as a condition of service
within DHIA.

3. Steps for Affiliate/Affiliate Disputes, or Affiliate/Service Provider Disputes

3.1 Either party may request arbitration within thirty (30) days of discovery of the alleged incident. Within this period, the parties should attempt to resolve the dispute directly.

3.2 The two parties will select the arbitration panel members as described under the Affiliate/Member section 2.3.4.

4. Assessment of Costs - Affiliate/Member Disputes

4.1 National DHIA administers logistics of the arbitration panel.
4.2 National DHIA advances panel expenses.
4.3 A $500 security deposit will be advanced by both parties.
4.4 Costs will be allocated at the discretion of the arbitration panel. In all cases, billing goes to the Affiliate.

5. Assessment of Costs - Affiliate/Affiliate or Affiliate/Service Provider Disputes

5.1 A $1000 advance will be advanced by both parties.

6. Damages, Awards and Judgments

6.1 Arbitrators will be prohibited from awarding punitive damages or amounts that cannot be anticipated and calculated with certainty (speculative damages).

6.2 Under no circumstances shall the arbitrators usurp authority that is reserved for others in the DHIA System.

7. Procedural Training for the Pool of Panel Candidates

7.1 Funded by National DHIA from the legal budget.
7.2 Informal sessions will be held periodically, possibly at caucus meetings.
7.3 Printed support materials will be available.

8. ANTITRUST - PREVENTIVE MEASURES

National DHIA believes the best investment of DHIA System resources is in educational and preventive efforts. Therefore, National DHIA will implement the following:

8.1 Review Affiliate organizations for Capper-Volstead compliance, e.g., Articles/Bylaws, membership, and governance.

8.2 Develop educational plan on anti-trust business practices:
8.2.1 Routine presentation for more than one representatives from each Affiliate.
8.2.2 Repeated mailings.
8.2.3 Offer review of proposed non-Capper-Volstead affiliations.
8.2.4 Discuss activities considered beyond the protection of the Capper-Volstead
exclusions.

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