California has adopted a law authorizing the California State Bar to certify dispute resolution providers. The Alternative Dispute Resolution Certification Program requires neutrals to comply with ethics and disclosure standards, and to provide a complaint procedure, in order to be certified. The author of the bill, Senate Judiciary Committee Chair Tom Umberg, says this law is especially aimed at neutrals who make decisions, such as arbitrators, but the statute covers “alternative dispute resolution firms, providers, and practitioners.” CA Bus & Prof Code § 6173(a)(1).

The certification is voluntary. It is available to anyone, whether or not they are active members of the State Bar. It offers different levels or tiers for certification, and permits the State Bar to charge an annual fee for the certification.

Presumably this certification program is designed to prevent system abuses like those perpetrated by Attorney Tom Girardi, who conspired with neutrals to bilk his clients out of millions of dollars due them through mediations and arbitrations. But the State Bar was one reason Girardi was able to get away with his theft for so many years, because Bar staff turned a blind eye to client complaints. Apparently the Legislature believes the State Bar has learned its lesson and can now be trusted to certify neutrals.

Oftentimes a “certification” warrants that the person has completed certain educational or vocational requirements, and/or has a certain amount of experience in the particular field. The California ADR certification makes no such representation. As one practitioner noted, this program codifies procedures most California dispute resolution providers already follow.