Committee Helps CPAs Settle Disputes

By Philip Zimmerman, CPA, Paneth Haber & Zimmerman LLP (retired)


Arbitration and Mediation Committee members Philip Zimmerman (left) and Barry Doll

Alternative dispute resolution helps avoid the high monetary and emotional cost and long delay of litigation. ADR also can prevent the loss of a relationship built up over many years.

The Arbitration and Mediation Committee revised the NYSSCPA's rules for arbitration and created rules for mediation. In addition to successfully conducting both arbitration and mediation under these rules for Society members, the committee responds to numerous members' calls and e-mail, and provides advice on handling disputes with other CPAs or clients, inserting an ADR clause in an engagements letter, and similar inquiries. The committee's members also were the first CPAs to serve as mediators for the Supreme Court, New York County Commercial Division's ADR program.

To promote the benefits of alternative dispute resolution, the Arbitration and Mediation Committee has presented technical sessions at the Foundation for Accounting Education's Accounting Show. The program, which the committee has conducted for the last three years, stresses how CPAs can increase their practices by becoming more knowledgeable in ADR. The committee also created a "mock mediation" video, produced by the American Arbitration Association, which shows the voluntary resolution through mediation of a dispute between a CPA firm and a client. Copies of the video are available through the NYSSCPA (see accompanying box).

In addition, the committee instituted the first mediator training program exclusively for CPAs, which it has conducted for the last two years through FAE, and presents other technical sessions as needed.

To improve its service and broaden its knowledge base, the Arbitration and Mediation Committee invites an ADR speaker to each of its quarterly meetings. The committee also reaches out to, and makes ADR presentations at, meetings of other Society committees such as Management of an Accounting Practice, CFO, Internal Audit, Banking, Textile, and Real Estate. Additional groups before which Arbitration and Mediation Committee members have spoken include the Nassau Chapter's Managing Partners Committee and the CPA Firm Administrators.