FEMA Announces Arbitration Pilot Program for Hurricane Sandy Disputes

The Federal Emergency Management Agency (FEMA) has announced plans to establish an arbitration pilot program for handling disaster assistance disputes related to Hurricane Sandy.  In January, President Obama signed into law the Sandy Recovery and Improvement Act which required that a binding arbitration mechanism be created to resolve “disputes relating to Public Assistance granted by FEMA…”  FEMA reportedly has plans to organize between 50 and 75 arbitral hearings as part of the pilot program.  Under the program, arbitrators and firms are expected to conduct an estimated 20 to 30 arbitrations in Washington, DC and nationwide each year.  In order to be eligible for the arbitration pilot program, applicants must have a disaster assistance claim that is valued at least $1 million.