177-040-0320 Alternative Dispute Resolution Process (1) Application and Limitations: The Lottery, in its discretion, may agree to an alternative dispute resolution process to resolve a dispute between a retailer and the Lottery subject to the following limitations: (a) No Surrender of Authority: The Lottery will not agree to any process in which its ultimate settlement or decision making authority is given to a third party. (b) Voluntary Process: All participants must voluntarily agree to the use of an alternative dispute resolution process. The process is voluntary and the Lottery and any other participant may withdraw from the process at any time and for any reason. (c) Mediator: A mediator does not represent the interests of any of the participants including the Lottery, may not offer legal advice, and has no decision making power to determine facts or impose a resolution, settlement, or other decision on the participants. (d) Settlement: Nothing in this rule obligates the Lottery to agree to an alternative dispute resolution process to resolve a dispute, to offer funds to settle any dispute or controversy, to accept a particular settlement or resolution, to alter its standards for accepting settlements, to submit to binding arbitration, or to alter any existing delegation of settlement or litigation authority. (e) Alternative Dispute Resolution Precluded: An alternative dispute resolution process may not be used if a contract termination is issued under the circumstances described in subsection (3)(b) of this rule. (f) Legal Action Filed: An alternative dispute resolution process as described in this rule may not be used if a legal action has been filed in court covering the same subject matter. (2) Prerequisites: Before Lottery will consider the use of an alternative dispute resolution process as described in this rule for a dispute resulting from a contract denial, a key person denial, or a contract termination, the contract applicant or the retailer must first have requested reconsideration under the process provided in OAR 177-040-0300. If the Lottery agrees to an alternative dispute resolution process, the Lottery, in its sole and absolute discretion, may stay the denial or the termination order pending completion of the process. (3) Mediation: When a retailer has complied with section (2) of this rule, a retailer may request mediation. The request is subject to section (1) of this rule and the following: (a) Factors to Consider: The Lottery may consider the factors set forth in OAR 137-005-0020 before agreeing to mediation. (b) Contract Termination Actions Where Mediation Precluded: The Lottery will not agree to mediation if a contract termination is issued under the following circumstances: (A) OLCC Suspension or Termination: The OLCC has terminated a video lottery retailer’s liquor license. (B) Other: Any of the bases for mandatory denial specified in OAR 177-040-0010(3)(a) apply. (c) Written Agreement: If the Lottery agrees to mediation, the Lottery and the retailer must enter into a written agreement to mediate as described in OAR 137-005-0030. (d) Time Limit: For a dispute resulting from a contract denial, a key person denial, or a contract termination, a request for mediation must be made within 10 days of issuance of the order upon reconsideration or a denial of reconsideration under OAR 177-040-0300. The Lottery will respond to the request within 7 business days. A request for mediation does not toll the 60 day period for requesting judicial review under ORS 183.484, unless the Lottery agrees to mediation and the contract termination order is withdrawn. The mediation process must be concluded within 60 days of the request. Statutory/Other Authority: ORS 461 & OR Const. Art. XV & Sec. 4(4) Statutes/Other Implemented: ORS 461.300 History: LOTT 7-2018, amend filed 08/30/2018, effective 08/31/2018 LOTT 4-2017, f. 8-25-17, cert. ef. 9-1-17 LOTT 3-2006, f. 2-16-06, cert. ef. 3-1-06