Leasing arbitration program – excess wear and damage guide

If you lease a new or used car in New York state, the law protects you from inappropriate charges for “excess wear and damage” (EWD). 

When you sign your lease, you agree to certain obligations with the owner of the car (the lessor). These obligations probably include your financially responsibility for EWD. The lease also defines EWD, so read your lease carefully to know what you are liable for.

However, if the lessor charges you an unreasonable amount for EWD when your lease ends, you are protected by the New York Motor Vehicle Retail Leasing Act (MVRLA). You have the legal right to challenge inappropriate charges through New York’s arbitration program for EWD in leased cars.

This EWD arbitration program, which was established by the Attorney General, allows you to dispute:

• whether the car has damage
• whether this damage is excessive
• how much you should pay the lessor for the damage

Arbitration is usually much simpler, faster, and cheaper than going to court. The process is much more informal, and does not strict require court procedures, such as rules of evidence. You and the lessor present your arguments to an arbitrator, rather than a judge. If the lessor offers its own arbitration program that complies with MVRLA, you can choose to go through that program instead. 

To participate in the Attorney General’s arbitration process, complete a request-for-arbitration form at any OAG regional office. Return it to the Attorney General’s lemon Law Arbitration Unit, Office of the Attorney General, 28 Liberty Street, New York NY 10005. 

Who is involved

The lessee – you, the person who leased the car

The lessor – the person or company that leased the car to you

The Attorney General’s lemon law unit – the office that determines whether your situation is eligible for arbitration

The administrator – a person (outside OAG) responsible for arbitration operations who collects your filing fee, appoints the arbitrator, and schedules your hearing. All of your communications with the lessor and the arbitrator go through the administrator

The arbitrator – a volunteer trained in the leasing law and in arbitration procedures by OAG and the administrator

How arbitration works 

You request arbitration

You start the process by completing a request-for-arbitration form. Return it to the Lemon Law Arbitration Unit, Office of the New York State Attorney General, 28 Liberty Street, New York NY 10005.

OAG reviews your claim

We review the form to decide whether your claim is eligible for arbitration:

• If your claim is eligible, we forward your form to the administrator for processing. The administrator asks you to pay the filing fee, appoints an arbitrator, and schedules a hearing to be held within 35 days. 
• If your claim is not eligible, the office returns your form to you with an explanation for the rejection. If there is an error that you can fix, you can resubmit your claim.

You have a hearing

You have the right to an oral hearing, at which each party presents its case to the arbitrator in person. 

You can also choose a documents-only hearing, in which both parties present their case in writing. However, if the lessor objects, you will have an oral hearing.

Either party, you or the lessor, can arrange for a stenographic or audio recording of the hearing at its own expense – even if the other objects. If a stenographer or audio recorder will be used, whoever requests it must give reasonable prior notice to the other party through the administrator. 

If you are missing any documents for the hearing, write to the arbitrator, through the administrator. Ask the arbitrator to direct the lessor to provide you with necessary documents or information. You can also request the arbitrator to subpoena documents or witnesses to appear at the hearing. 

If either you or the lessor fails to appear at your oral hearing, unless the hearing has been properly rescheduled, the arbitrator will go forward with the hearing. The arbitrator will issue a decision based on the evidence presented and the documents in the file. 

You and the lessor receive the arbitrator’s decision

The arbitrator will most likely issue the decision within 10 days after the hearing. The decision may be delayed if the arbitrator has to request additional documents or information to be submitted: 

If you win the dispute, the arbitrator’s decision in your favor will include the return of the filing fee. 

The lessor must comply with the decision within 30 days. 

If the lessor does not comply with the decision, you can bring an action in court to confirm the award. You must start this action within one year of receiving the decision. If you win, the court will convert the arbitrator’s award into a court judgement. 

If you wish to go to court, consult a private attorney.

Which leases are covered under New York’s Motor Vehicle Retail Leasing Act (MVRLA)?

MVRLA (Article 9-A of chapter 41 of New York Consolidated Laws) covers new or used vehicles that are:

• leased in New York state
• leased after August 30, 1995
• leased for more than four months
• used for primarily personal, family, or household purposes
   

What is “excess wear and damage” (EWD)?

There is no standard definition of EWD, but it typically includes:

• glass that is damaged or tinted
• damaged body, fenders, metalwork, lights, trim, or paint
• missing equipment that was in or on the vehicle at delivery and has not been replaced with equipment of equal quality and design
• missing wheel covers, jack, or wheel wrench
• missing or unsafe wheels or tires (including spare – snow tires are not acceptable); tire with less than 1/8 inch of tread at the shallowest point
• torn, damaged, or stained dashboard, floor covers, seats, head liners, upholstery, interior work, or trunk liners
• any mechanical damage or condition that causes the vehicle to operate in a noisy, rough, improper, unsafe, or illegal manner
• any other damage, whether or not covered by insurance 

The law requires the lease to describe the damage you will be liable for – so read your lease carefully. 
 

Does the lessor have to actually repair the car to charge me for EWD? 

No, if you return the car at the end of the lease. Instead of repairing the car and charging you for the repair costs, the lessor may use an estimate. For example, the lessor could charge you based on an itemized estimate of repair costs from an appraiser licensed by the New York State Department of Motor Vehicles (DMV).

However, if you return the car before the end of your lease, the lessor can charge only as much as the actual cost of repairs (minus any discounts) that it paid.
 

Does the lessor have to warn me before it charges for EWD?

Yes. The lessor must mail or deliver to you a notice advising you of your legal rights and obligations:

• if your lease is ending as originally scheduled, 20-40 days before the end of the lease
• if your lease is terminating early, no more than 10 business days after the lease ends
   

What does the notice have to say?

It must advise you of the following rights and obligations:

• You have the right to get an itemized appraisal of any EWD. This must be done at your own expense and before you return the car. It must be done by an appraiser licensed by the DMV, no more than 20 days before you return the car.
• The lessor has the right to get its own itemized appraisal of EWD up to 30 days after it gets the car back. The appraisal must be done by a DMV-licensed appraiser.
• If your appraisal disagrees with the lessor’s, either of you can submit the dispute to an arbitration process. This can be either the lessor’s own informal settlement procedure or the Attorney General’s arbitration program. You must submit the dispute for arbitration within 60 days of the lessor receiving the car back. 
• If you did not get an appraisal before returning the car, you still have the right to get one. You must have the car appraised within 10 business days of receiving (or within 14 days of the lessor having sent) the lessor’s itemized appraisal and bill for EWD.  
• If the lessor’s EWD claim is based on the actual cost of repairs and you did not get your own appraisal, the only things you can dispute are whether a claimed item exists, or whether the item is more than the actual cost of repairs. 
   

What if I want to have the car appraised, but already returned it to the lessor? 

The lessor must allow your licensed appraiser access to the car at a reasonable time and place. The lessor is not required to deliver the car to your appraiser. 

If the lessor does not allow your appraiser reasonable access to the car, it forfeits the right to collect any EWD charges. 
 

What documents does the lessor have to provide me before it can charge for EWD?

The lessor must provide you with both of the following, both containing notices advising you of your legal rights:

• an itemized bill that contains an itemized list of estimated or actual cost of repairing or replacing each item, and the address to which you should mail your response
• an appraisal that is dated and signed by the lessor or its agent and that identifies each EWD item

The bill and appraisal can be combined into a single document.  

The lessor must send these to you by registered mail, or hand deliver them to you, within 30 days after getting the car back. 
 

How do I resolve a dispute over EWD?

You can submit the dispute to either:

• an arbitration program established by the lessor that complies with the law’s requirements
• the Attorney General’s arbitration program

Important points to remember:

• If you dispute the charges, the lessor must submit to an arbitration program before pursuing any other remedy.
• As an alternative, you can sue the lessor in court. Be aware that going to court is usually much more complicated, time consuming, and expensive than arbitration. 
• Arbitration is designed to let you participate without an attorney. But, if you wish, you can engage an attorney or someone else to help you. 
• If you participate in the Attorney General’s arbitration program, the arbitrator’s decision is legally binding. You cannot pursue any further remedy after this program.
   

Can I ask the arbitrator to change their decision about the award? 

The only modifications that can be made, generally, are to correct a miscalculation or a technical mistake. For example, the arbitrator could change the award if they had forgotten to include the filing fee in the refund.

Either you or the lessor can request the arbitrator to modify the award:

• Write to the administrator within 20 days of receiving the award. 
• The other party can object to the modification.
• The arbitrator must rule within 30 days after receiving the request. 

To modify an award after 20 days, you must apply to a court. 
 

Can I challenge the arbitrator’s decision?

Either you or the lessor can begin a lawsuit to challenge an arbitrator’s award within 90 days of receiving the award. However, the legal grounds for these challenges are limited. Courts will usually uphold an arbitrator’s award if it is reasonable and supported by evidence.
 

Can the lessor report me to a credit-reporting agency if I do not pay for EWD?

The lessor cannot report an unsatisfied claim for nonpayment of EWD until:

• after the right to challenge an arbitration award has expired (90 days)
• until a final judgment is obtained in a court action
• where you and the lessor execute a settlement agreement, 30 days after you fail to pay a due payment 

The lessee is you, the consumer who has leased the vehicle.

The lessor is the car’s owner, who has leased the car to you, and who may use a financing company to handle your lease payments. We will use "lessor" to include the financing company as well as the car's owner. 

1. (a) Upon the scheduled termination of a retail lease agreement, the holder shall not charge, receive or collect a charge for excess wear and damage to the vehicle which exceeds:  (i) the actual cost of repairs, reduced by all discounts, paid by the holder;  or (ii) a true itemized estimate of the cost of such repairs by an appraiser licensed pursuant to section three hundred ninety-eight-d of the vehicle and traffic law selected by the holder, of the cost of such repairs.

(b) Upon early termination of a retail lease agreement, the holder shall not charge, receive or collect a charge for excess wear and damage to the vehicle which exceeds the actual costs of repairs, reduced by all discounts, paid by the holder.

2. In order for a holder to impose a charge for excess wear and damage to a vehicle subject to a retail lease agreement, such agreement shall contain a clause describing the excess wear and damage to the vehicle for which the lessee may be liable.  Such holder shall, not more than forty days nor less than twenty days prior to the scheduled termination date, or, not more than ten business days after the date of an early termination of a lease agreement, mail or deliver to the lessee a notice advising the lessee of the following rights and obligations of the parties, herein granted and imposed:

(a) Such notice shall include the following statement, as set forth herein, at the beginning of the notice in at least ten-point bold type:

“YOUR LEASE AGREEMENT ALLOWS (HOLDER) TO ASSESS A CHARGE FOR EXCESS WEAR AND DAMAGE TO THE VEHICLE.  YOU SHOULD OBTAIN YOUR OWN EVIDENCE OF THE CURRENT CONDITION OF THE VEHICLE NOT MORE THAN TWENTY (20) DAYS PRIOR TO THE SCHEDULED TERMINATION OF YOUR LEASE.  YOU ALSO WILL HAVE THE RIGHT TO SUBMIT DISPUTES TO THE ALTERNATE ARBITRATION MECHANISM ESTABLISHED UNDER REGULATIONS PROMULGATED BY THE NEW YORK STATE ATTORNEY GENERAL.”

(b) In the case of a scheduled termination, of the lessee's right to turn the vehicle in with a copy of an itemized appraisal of excess wear and damage to the vehicle prepared by an appraiser licensed under section three hundred ninety-eight-d of the vehicle and traffic law, selected by the lessee and conducted not more than twenty days prior to the scheduled termination date;

(c) Of the right of the holder to, within thirty days after the date on which the vehicle comes into the actual physical possession of the holder, obtain a written itemized appraisal of excessive wear and damage to the vehicle prepared by an appraiser licensed under section three hundred ninety-eight-d of the vehicle and traffic law selected by the holder;

(d) That if the lessee had not previously obtained and submitted to the holder a written itemized appraisal on the lessee's own behalf in accordance with paragraph (b) of this subdivision, the lessee will have the greater of ten business days after the lessee has received or fourteen business days to do so after the holder has sent, in conformance with subdivision three of this section, an itemized bill for excess wear and damage and a copy of the itemized appraisal prepared on behalf of the holder, unless the lessee does not dispute any of the items contained therein.  In the case where the holder bases the charge for excess wear and damage on the actual cost of repairs, the notice shall also inform the lessee that should the lessee fail to obtain an itemized written appraisal, he or she is entitled to dispute only whether any items claimed exist and/or are excess wear and damage to the vehicle, but not the actual cost of making the repairs;

(e) That if the lessee disputes that any of the items claimed for excess wear and damage to the vehicle exist or are excessive in nature, the lessee may submit the dispute within sixty days of the date on which the vehicle comes into the actual physical possession of the holder to the holder's informal dispute settlement procedure, if any, or, upon the payment of the prescribed filing fee which is refundable if the arbitrator finds in the lessee's favor, to an alternative arbitration mechanism established under regulations promulgated by the attorney general of the state of New York;

(f) That if there exists a discrepancy between the itemized appraisals obtained by the holder and the lessee, if any, the holder shall submit the dispute within sixty days of the date on which the vehicle comes into the actual physical possession of the holder to the holder's informal dispute settlement procedure, if any, unless the lessee exercises the option granted by paragraph (b) of subdivision five of this section;  provided, however, that in the event the holder has complied with the provisions of this subdivision, a lessee who has failed to obtain an itemized appraisal of the excessive wear and damage to the vehicle in accordance with either paragraph (b) or (c) of this subdivision may dispute only the existence of any item or whether the wear is excessive in nature, but may not dispute the actual cost of repairs.

3. (a) Itemized bill.  (i) In the event that the holder wishes to impose a charge for excess wear and damage to the vehicle, the holder shall send by registered mail or hand-deliver to the lessee a bill containing an itemized list of the estimated or actual cost of repairing or replacing each item as to which an excess wear and damage charge is claimed and specifying the address to which any response must be mailed.  The bill shall be mailed or hand-delivered to the lessee within thirty days after the date on which the vehicle comes into the actual possession of the holder.

(ii) The itemized bill shall include the following statements printed in at least ten-point type:  “You are being asked to pay an amount claimed for excess wear and damage to the vehicle.  If you wish to contest this amount, you must obtain an itemized appraisal from an appraiser licensed by the New York State Department of Motor Vehicles, and mail or deliver a copy of such appraisal to (NAME AND ADDRESS OF HOLDER) within the greater of fourteen business days after (NAME OF HOLDER) has sent, or ten business days of receipt of this bill and (NAME OF HOLDER'S) itemized appraisal.  If you fail to do so, you will forfeit your right to contest in arbitration any actual repair costs incurred by the (HOLDER) for excess wear and damage;  however, you do not forfeit your right to contest the existence of any item or whether the wear is excessive in nature.”

(iii) The itemized bill shall also notify lessees of their material rights and obligations for dispute resolution in arbitration.

(b) Itemized appraisal.  (i) A holder who imposes a charge for excess wear and damage to the vehicle shall send by registered mail or hand-deliver, within thirty days after the date on which the vehicle comes into actual physical possession of the holder, a written itemized appraisal prepared by an appraiser licensed under section three hundred ninety-eight-d of the vehicle and traffic law.  The appraisal shall be dated, signed by the holder or its agent, and identify by type each item of excess wear and damage.

(ii) The following notice shall be included at the beginning of the itemized appraisal prepared on behalf of the holder and furnished to the lessee,

“ALL ITEMS OF DAMAGE FOR WHICH A CHARGE FOR EXCESSIVE WEAR OR DAMAGE WILL BE CLAIMED BY THE HOLDER MUST BE NOTED IN THIS APPRAISAL.  IF YOU DISPUTE THE EXISTENCE OR NATURE OF ANY ITEM OF DAMAGE IDENTIFIED IN THIS NOTICE, YOU MAY SUBMIT THE DISPUTE TO THE ALTERNATE ARBITRATION MECHANISM ESTABLISHED UNDER REGULATIONS PROMULGATED BY THE NEW YORK STATE ATTORNEY GENERAL.”

4. (a) The itemized bill and appraisal required by subdivision three of this section may be combined into a single document.  Mere acknowledgement by the lessee of receipt of an itemized bill, an appraisal, or a combination of the two shall not operate as an admission of the existence, nature or amount of any of the items therein.

(b)(i) The holder shall grant the lessee access to the vehicle at a reasonable time and place in order for the lessee to obtain an itemized appraisal on the lessee's own behalf.  The holder shall not be required, however, to deliver the vehicle to, or produce the vehicle at, a destination designated by the lessee for such purpose.

(ii) A holder may not fail to provide, either intentionally or by actions or omissions, reasonable access to the vehicle by the licensed appraiser chosen by the lessee within the period during which a lessee must obtain and submit an appraisal.  If the holder fails to so provide reasonable access to the vehicle, the holder shall be deemed to have forfeited its contractual right to charge, receive or collect any charge for excessive wear and damage to the vehicle from the lessee.

(c) A lessor or holder of a retail lease agreement shall not report an unsatisfied claim for excess wear and damage to a credit reporting agency as a derogatory item of information until:  (i) the expiration of the time granted under article seventy-five of the civil practice law and rules for the filing of a petition to vacate or modify an arbitrator's award;  (ii) the issue has been a subject of a final judgment;  or (iii) where the holder and the lessee execute a settlement, thirty days after the date a payment is due under the settlement if no payment has been made.

5. (a) Arbitration and enforcement.  If a holder has established or participates in an informal dispute settlement procedure which is consistent in all respects with the provisions of part seven hundred three of title sixteen of the code of federal regulations, any dispute, disparity or conflict between any appraisal report prepared by an appraiser licensed by the state department of motor vehicles on behalf of the holder and one prepared on behalf of the lessee shall be decided by such informal dispute settlement procedure.  Holders utilizing informal dispute settlement procedures pursuant to this subdivision shall insure that the arbitrators participating in such informal dispute settlement procedures are familiar with the provisions of this section.

(b) Upon the payment of a prescribed filing fee, a consumer shall have the option of submitting any dispute arising under this section to an alternate arbitration mechanism established pursuant to regulations to be promulgated hereunder by the attorney general.  Upon application of the consumer and payment of the filing fee, the holder shall submit to such alternate arbitration.  Such alternate arbitration shall be conducted by a professional arbitrator or arbitration firm appointed by and under regulations established by the attorney general.  Such alternate arbitration mechanism shall ensure the personal objectivity of its arbitrators and the right of each party to present its case, to be in attendance during any presentation made by the other party and to rebut or refute such presentation.  In all other respects, such alternate arbitration mechanism shall be governed by article seventy-five of the civil practice law and rules.  Holder or lessee shall have thirty days from the date of mailing of a copy of the arbitrator's decision to such holder or lessee to comply with the terms of such decision.

(c) In no event shall any person who has participated in an informal dispute settlement procedure be precluded from seeking the rights or remedies available to such person under applicable law.

(d) Nothing in this section shall be deemed to prohibit:  (i) the holder and the lessee from agreeing upon termination of the agreement to the payment by the lessee, in satisfaction of his or her obligation under the provisions of the agreement, of an amount which the lessor and the lessee agree is a reasonable figure to compensate for damage to the vehicle;  (ii) the holder from retaining any portion of a security deposit in satisfaction of amounts owed to the holder that are not attributable to excess wear and tear;  or (iii) to restrict or otherwise regulate the assessment of charges for excess mileage.

302.1 Purpose
302.2 Definitions
302.3 Appointment of administrator
302.4 Lessee'request for arbitration
302.5 Assignment of arbitrator
302.6 Scheduling of arbitration hearings
302.7 Adjournments
302.8 Request for additional information or documents
302.9 Representation by counsel or third party
302.10 Interpreters
302.11 Hearing procedure
302.12 Hearing on documentonly
302.13 Defaults
302.14 Withdrawal or settlement prior to decision
302.15 The decision
302.16 Record keeping
302.17 Miscellaneous provisions

Section 302.1 Purpose

(a) These regulations are promulgated pursuant to section 343(5)(b) of the Personal Property Law (PPL) and set forth the procedures for the operation of an alternative arbitration mechanism (the program).
(b) These regulations are designed to promote the independent, speedy, efficient and fair disposition of disputes concerning the assessment of excess wear and/or damage to leased vehicles.

Section 302.2 Definitions

(a) Unless otherwise stated, terms used in these regulations are as defined in PPL article 9-A.
(b) The term administrator shall mean a professional arbitration firm or individual appointed by the Attorney General to administer the program.

Section 302.3 Appointment of administrator

(a) The Attorney General shall appoint an administrator initially to a term not to exceed two years. The term shall be renewable.
(b) The following criteria shall be considered in the selection of an administrator: capability, objectivity, nonaffiliation with a holder or a holder's arbitration program, reliability, experience, financial stability, extent of geographic coverage, and fee structure.
(c) The Attorney General shall give appropriate public notice at least 60 days prior to the expiration of the administrator's term inviting any interested qualified party to apply in writing for the position of administrator within 30 days from the date of the public notice.
(d) Upon a vacancy occurring prior to the expiration of an administrator's term, the time periods in subdivision (c) shall not apply and the Attorney General shall take appropriate steps to assure the continued administration of the program.

Section 302.4 Lessee's request for arbitration

(a) The Attorney General shall prescribe and make available a request for arbitration form. To apply for arbitration under the program, a lessee shall complete and submit the prescribed form to the Attorney General.
(b) Those lessees wishing a hearing on documents only shall so indicate on the form.
(c) Upon receipt of the submitted form, the Attorney General shall assign a case number and review it for completeness and eligibility and shall accept or reject it.
(d) If the form is rejected, the Attorney General shall promptly return the form to the lessee, indicating in writing the reasons for the rejection and, where possible, inviting the lessee to correct the deficiencies.
(e) If the form is accepted, it shall be referred to the administrator for processing. The Attorney General shall promptly notify the lessee in writing of the acceptance of the form and of its referral to the administrator. Upon receipt of the accepted form, the administrator shall notify the lessee to submit the required filing fee. Upon receipt of the prescribed filing fee, the administrator shall date stamp the request for arbitration form. Such date shall be considered the filing date.
(f) If, after 30 days from the date of the notice of acceptance, the administrator fails to receive the prescribed filing fee, the administrator shall promptly advise the lessee in writing that unless such fee is received within 60 days from the date of the notice of acceptance, the form will be returned and the case marked closed. After such time, if the lessee wishes to submit a dispute to the program, (s)he must submit another request for arbitration form to the Attorney General.
(g) Participation in any informal dispute resolution mechanism that is not binding on the lessee shall not affect the eligibility of a lessee to participate in the program.

Section 302.5 Assignment of arbitrator

(a) After the filing date, the administrator shall assign an arbitrator to hear and decide the case. Notice of assignment shall be mailed to the arbitrator and the parties along with a copy of these regulations and PPL section 343.
(b) The arbitrator assigned shall not have any bias, financial or personal interest in the outcome of the hearing, or current connection to the manufacture, sale, lease, repair or appraisal of motor vehicles.
(c) Upon a finding by the administrator, at any stage of the process, of grounds to disqualify the arbitrator, the administrator shall dismiss the arbitrator and assign another arbitrator to the case.
(d) If any arbitrator should resign, die, withdraw or be unable to perform the duties of his/her position, the administrator shall assign another arbitrator to the case and the period to render a decision shall be extended accordingly.
(e) Arbitrators shall undergo training established by the administrator and the Attorney General. This training shall include procedural techniques, the duties and responsibilities of arbitrators under the program, and the substantive provisions of PPL section 343.

Section 302.6 Scheduling of arbitration hearings

(a) The arbitration shall be conducted as an oral hearing unless either party has requested a hearing on documents only and both parties agree to a documents only hearing; provided, however, that the parties may mutually agree in writing to change the mode of hearing. Upon such change, the parties shall notify the administrator who shall comply with the request and, where necessary, such request shall waive the 40 day limit in which a decision must be rendered.
(b) Within five days of the filing date, the administrator shall send the holder a copy of the lessee's completed request for arbitration form together with a notice that it may respond in writing. Such response shall be sent in triplicate, within 15 days of the filing date, to the administrator, who shall promptly forward a copy to the lessee and to the arbitrator.
(c) The lessee may respond in writing to the holder's submission within 25 days of the filing date. Such response shall be sent in triplicate to the administrator, who shall promptly forward a copy to the holder and to the arbitrator.
(d) An oral hearing, where appropriate, shall be scheduled no later than 35 days from the filing date, unless a later date is agreed to by both parties. The administrator shall notify both parties of the date, time and place of the hearing at least eight days prior to its scheduled date.
(e) Hearings shall be scheduled to accommodate, where possible, time-of-day needs of the lessee and the holder, including evening and weekend hours.
(f) Hearings shall also be scheduled to accommodate geographic needs of the lessee and the lessor. Regular hearing sites shall be established at locations designated by the administrator, including in the following areas: Albany, Binghamton, Buffalo, Nassau County, New York City, Plattsburgh, Poughkeepsie, Rochester, Suffolk County, Syracuse, Utica, Watertown and Westchester. No hearing site established by the administrator shall be discontinued without the approval of the Attorney General. In addition, where a regular site is more than 100 miles from the lessee's residence, a hearing must be scheduled at the request of the lessee at a location designated by the administrator within 100 miles of the lessee's residence.
(g) A party may present its case by telephone, provided that adequate advance notice is given to the administrator and the consent of the other party is obtained. In such cases, the arbitrator and both parties shall be included and the party requesting the telephonic hearing shall pay all costs associated therewith.

Section 302.7 Adjournments

Either party may make a request to reschedule the hearing. Except in unusual circumstances, such request shall be made to the administrator orally or in writing at least two business days prior to the hearing date. Upon a finding of good cause, the arbitrator may reschedule the hearing. In unusual circumstances, the arbitrator may reschedule the hearing at any time prior to its commencement.

Section 302.8 Request for additional information or documents

(a) A party, by application in writing to the administrator, may request the arbitrator to direct the other party to produce any documents or information. The arbitrator shall, upon receiving such request, or on his or her own initiative, direct the production of documents or information which she or he believes will reasonably assist a party in presenting his or her case or assist the arbitrator in deciding the case. The arbitrator's direction for the production of documents and information shall allow a reasonable time for the gathering and production of such documents and information.
(b) All documents and information forwarded in compliance with the arbitrator's direction shall be legible and received no later than three business days prior to the date of the hearing. Each party shall bear its own photocopying costs.
(c) Upon failure of a party to comply with the arbitrator's direction to produce documents and/or information, the arbitrator may draw a negative inference concerning any issue involving such documents or information.
(d) The term documents in this section shall include, but not be limited to, relevant manufacturer's service bulletins, dealer work orders, diagnoses, repair bills, damage appraisals and all communications relating to the issue of excessive wear or damage.
(e) At the request of either party or on his or her own initiative, the arbitrator, may subpoena any witnesses to appear or documents to be presented at the hearing.

Section 302.9 Representation by counsel or third party

Any party may be represented by counsel or assisted by any third party.

Section 302.10 Interpreters

Any party wishing an interpreter shall make the necessary arrangements and assume the costs for such service.

Section 302.11 Hearing procedure

(a) The conduct of the hearing shall afford each party a full and equal opportunity to present his/her case.
(b) The arbitrator shall administer an oath or affirmation to each individual who testifies.
(c) Formal rules of evidence shall not apply; the parties may introduce any evidence which the arbitrator agrees is relevant.
(d) The arbitrator shall receive in evidence a decision rendered in a previous arbitration which was not binding on the lessee and give it such weight as the arbitrator deems appropriate.
(e) The arbitrator shall receive relevant evidence of witnesses by affidavit, and such affidavits shall be given such weight as the arbitrator deems appropriate.
(f) The arbitrator shall have discretion to examine or ride in the lessee's vehicle, if available. Both parties shall be afforded the opportunity to be present and accompany the arbitrator on any such examination or ride.
(g) The lessee shall first present his/her evidence and the holder shall then present its evidence. Each party may question the witnesses called by the other. The arbitrator may question any party or witness at any time during the hearing.
(h) A party has the right to make a record of the hearing. The arbitrator shall maintain decorum at the hearing.
(i) The arbitrator may request additional evidence after the closing of the hearing. All such evidence shall be submitted to the administrator for transmission to the arbitrator and the parties

Section 302.12 Hearing on documents only

If the hearing is on documents only, all documents shall be submitted to the administrator no later than 30 days from the filing date. The arbitrator shall render a timely decision based on all documents submitted.

Section 302.13 Defaults

(a) Upon the failure of a party to appear at an oral hearing, the arbitrator shall nevertheless conduct the hearing and render a timely decision based on the evidence presented and documents contained in the file.
(b) If neither party appears at the hearing, the arbitrator shall return the case to the administrator who shall close it and so notify the parties.
(c) In a documents-only hearing, where the holder fails to respond, the arbitrator shall render a decision based upon the documents contained in the file.

Section 302.14 Withdrawal or settlement prior to decision

(a) A lessee may withdraw his/her request for arbitration at any time prior to decision. If the administrator is notified by the lessee of his/her request to withdraw within seven business days of the filing date, the administrator shall refund the filing fee.
(b) If the parties agree to a settlement more than seven business days after the filing date but prior to the issuance of a decision, they shall notify the administrator in writing of the terms of the settlement. Upon the request of the parties, the arbitrator shall issue a decision reflecting the settlement.

Section 302.15 The decision

(a) The arbitrator shall render a decision within 40 days of the filing date which shall be in writing on a form prescribed by the Attorney General. The decision shall be dated and signed by the arbitrator.
(b) The decision shall indicate whether there was any excess wear and/or damage to the vehicle for which the lessee is responsible and, where applicable, specify the amount of such excess wear and/or damage. A basis for the arbitrator's findings and calculations shall be included in the decision. The decision shall also award the prescribed filing fee to a successful lessee.
(c) The decision shall, where applicable, require that any action or payment be completed within 30 days from the date the administrator notifies the holder in writing of the decision, unless the parties agree to an extended time.
(d) The administrator shall review the decision for technical completeness and accuracy and advise the arbitrator of any suggested technical corrections, such as computational, typographical or other minor corrections. Such changes shall be made only with the consent of the arbitrator.
(e) After review, the administrator shall, within 45 days of the filing date, mail a copy of the final decision to both parties, the arbitrator, and the Attorney General. The date of mailing to the parties shall be date-stamped by the administrator on the decision as the date of issuance.
(f) Failure to mail the decision to the parties within the specified time period or failure to hold the hearing within the prescribed time shall not invalidate the decision.
(g) The arbitrator's decision is binding on both parties and is final, subject only to judicial review pursuant to CPLR, article 75. The decision shall include a statement to this effect.

Section 302.16 Record keeping

The administrator shall keep all records pertaining to each arbitration for a period of at least two years and shall make the records of a particular arbitration available for inspection upon written request by a party to that arbitration, and shall make records of all arbitrations available to the Attorney General upon written request.

Section 302.17 Miscellaneous provisions

(a) All communications between the parties and the arbitrator, other than at oral hearings, shall be directed to the administrator.
(b) If any provision of these regulations or the application of such provision to any persons or circumstances shall be held invalid, the validity of the remainder of these regulations and the applicability of such provision to other persons or circumstances shall not be affected thereby.